Employment-at-Will: Employer and Employee Rights
“Employment at will” is often described as a simple rule: an employer can terminate an employee at any time, for any reason—or even no reason at all. But in practice, this doctrine has important limitations, especially when public policy is at stake.
What “At-Will” Really Means
In many states, including Washington, the default rule is that employment is at-will. That means either party (the employer or the employee) can end the relationship without advance notice or cause.
However, this broad flexibility is not absolute. Courts have carved out exceptions to protect important societal interests.
The Public Policy Exception
One of the most significant limits on at-will employment is the “public policy” exception. Washington courts have made clear that employees cannot be terminated for reasons that violate public policy.
This exception is rooted in the idea that certain behaviors (such as reporting wrongdoing) benefit society as a whole. Punishing employees for engaging in those behaviors would undermine broader legal and ethical standards.
When Termination Becomes “Wrongful”
To establish a claim for wrongful termination in violation of public policy, an employee typically must show four elements:
A clear public policy exists
The employee engaged in conduct that promotes that policy
The termination was caused by that conduct
The employer lacks an overriding justification for the dismissal
These elements ensure that not every termination dispute becomes a lawsuit—only those implicating significant public concerns.
Whistleblowing: A Key Protected Activity
A common example of this exception is whistleblowing, when an employee reports suspected misconduct. Courts have consistently recognized that firing an employee for reporting illegal or unethical behavior can violate public policy.
Importantly, the focus is not just on whether a specific law was broken. Courts also consider whether the employee’s actions advanced a broader public good—such as preventing fraud, safeguarding public funds, or ensuring compliance with regulations.
Another critical point: the right to be free from wrongful termination exists independently of any employment contract. Even if an employee does not have a formal agreement, they may still be protected under the public policy exception.
Why This Matters
For employers, the takeaway is clear: while at-will employment offers flexibility, it is not a blank check. Termination decisions must be carefully considered, especially when an employee has raised concerns about legal compliance or ethical practices.
For employees, it’s equally important to understand that the law may protect you if you act in good faith to report wrongdoing or uphold public interests.
Final Thoughts
Employment at will remains a foundational principle in U.S. labor law. But its limits, particularly the public policy exception, play a vital role in balancing employer authority with societal values. Recognizing those limits helps ensure workplaces remain both flexible and fair.
If you think you have been wrongfully terminated contact the Seattle Litigation Group for a consultation.