What Are the Three Common Law Exceptions to the Employment-at-Will Doctrine?

California citizens rely on their jobs to support themselves and their families. Without reliable employment, every facet of our community members’ lives could be negatively affected. Recognizing this, California has implemented a robust legal protection system for employees within the state. If you have been terminated from your job, you may be asking, “What are the three common law exceptions to the employment-at-will doctrine?”

It is crucial to understand these protections to keep you from being taken advantage of by your employer. Though California is an at-will state, there are still exceptions in place to protect employees from being wrongfully terminated. Speaking with an Orange County employment attorney is the most effective way to determine if you have been wrongfully terminated, but the following information can help you explore exceptions to the at-will doctrine.

Clarifying the At-Will Doctrine

Before exploring exceptions, it is important to understand the at-will doctrine. According to California Labor Code Section 2922, the default employment relationship is considered at-will. This means both the employee and employer can terminate the employment relationship at any time without prior notice unless there are other existing agreements. Though this allows employers to terminate the relationship, it also allows the employee to do the same without penalty.

Exceptions to the Employment At-Will Doctrine

49 of the 50 U.S. states allow at-will employment, but there are common exceptions to the doctrine. If an employee is terminated in a way that falls under an exception, they have the right to file a claim against their employer for wrongful termination. The most common exceptions are public policy, implied contract, and implied covenant of good faith and fair dealings.

Public Policy

This exception states that an employer cannot discharge an employee if the termination would contravene the doctrine of public policy. In other words, employers are barred from firing employees for reasons that violate fundamental public policy. The public policy exception is generally the most widely recognized exception to at-will employment. Examples of wrongful termination include firing an employee because they:

• Filed a compensation claim for injuries sustained while working
• Refused to violate a law or engage in illegal activities
• Exercised their legal rights
• Performed their legal obligations

Under the California Whistleblower Protection Act, this exception also applies to whistleblowers.

Implied Contract

Employees with written contracts are exempt from at-will employment if that is specified in the contract, but employees with an implied contract are also protected under the implied contract exception. Implied contracts exist when an employer’s policies, actions, or words result in a reasonable expectation of continued employment.

Implied contracts are created when the employer does not terminate employees without good cause or if the company has implemented rules that dictate employee termination. Even though the contract is implied, it is still considered a breach of contract if the implied conditions are violated. 41 states recognize implied contracts, but this exception can be incredibly difficult to prove.

Implied Covenant of Good Faith and Fair Dealing

This type of agreement is an unwritten, but binding, understanding that the parties involved will behave in good faith, act honestly, and deal fairly with each other while carrying out the terms of the express or implied contract. This exception to the at-will statute aims to balance the power disparity that typically exists between employees and employers.

This covenant applies when an employer engages in malicious behavior, like lying about the reason an employee was fired or terminating an employee, to prevent them from obtaining benefits they are entitled to.

FAQs

Q: What Are the Three Exceptions to the Employment-at-Will Doctrine?

A: The employment-at-will doctrine states that an employment relationship can be terminated by either the employer or the employee for any reason and without giving notice. There are, however, exceptions to this doctrine. Three common exceptions to this doctrine are public policy, implied contract, and implied covenant of good faith and fair dealings. A skilled California employment attorney can determine if your job termination falls under an exception to the employment-at-will doctrine.

Q: Do I Need an Attorney If I Have Been Fired Under an Employment-at-Will Exception?

A: The default assumption for an employment relationship is at-will employment. Though there are exceptions that prevent an employer from firing an employee under certain conditions, it can be difficult to prove how such terminations meet the requirements. A California employment attorney can determine the merit of your case and collect evidence to support your claim.

Q: What Is Covered Under the Public Policy Exception to the At-Will Employment Doctrine?

A: Though employment in California is generally considered at will, there are exceptions to this rule. The public policy exception states that an employee cannot be discharged if the discharge would contravene public policy doctrine. In other words, the public policy exception prevents an employer from terminating an employee in disregard of California’s labor statutes. For example, an employee cannot be legally terminated if they exercise their legal rights, refuse to break a law, or report violations by employers.

Q: What Are the Common Law Exceptions to At-Will Employment?

A: Common law, also known as case law, is an unwritten legal system that relies on judicial precedents and interpretations. This differs from statutory law, which is created by legislatures and codified in written statutes. The common law exceptions to at-will employment are public policy, implied covenant of good faith and fair dealings, and implied contract. A knowledgeable Orange County employment attorney can explore your options to file a claim under common law exceptions.

Exploring At-Will Doctrine Exceptions

California has a long history of being recognized as an employee-friendly state that offers many protections for workers. Californians also recognize the importance of holding their employers accountable. Fortunately, our community does not have to approach these situations alone.

Employment law cases can be legally complex, emotionally draining, and immensely time-consuming. If you have been terminated in a way that falls under the employment-at-will exceptions, reach out to the Blake & Ayaz team today. We can explore your options with an employment law case as well as discuss the potential outcomes for your situation.