At-Will Employment in the US: What European Employers Must Understand

The At-Will Doctrine

In the United States, most employment is at-will. This means the employer can terminate the employee at any time, for any reason (or no reason), without notice. The employee can also quit at any time. This is fundamentally different from European employment law, which typically requires cause for termination and notice periods.

Exceptions to At-Will

At-will does not mean you can fire someone for any reason. It is illegal to terminate based on protected characteristics (race, gender, age, disability), in retaliation for reporting violations or filing complaints, for exercising legal rights like taking family leave, or in violation of an implied contract. California courts are particularly aggressive about enforcing these exceptions, especially the implied covenant of good faith and fair dealing.

The WARN Act

While individual terminations generally do not require notice, mass layoffs do. The federal WARN Act requires 60 days notice for layoffs of 100+ employees. California WARN Act is stricter: 60 days notice for layoffs of 50+ employees. New York also has its own WARN Act with specific notice requirements. Failure to provide WARN notice results in 60 days back pay and benefits for each affected employee.

Drafting At-Will Clauses for European Companies

Your employment contract should clearly state the at-will nature of the relationship. Avoid language that could create an implied contract - do not promise continued employment or list specific termination causes. Many European companies instinctively add notice periods and cause requirements from their home country. In California and New York, this can actually create legal obligations that go beyond what US law requires. HireStates generates contracts with properly drafted at-will clauses that protect both parties.