1. Termination Employment-at-will
Payne v. Western and Atlantic RA Company (1884)
The Court confirmed the right of an employer to hire or fire any individual for good cause, bad cause, or no cause at all

2. Restrictions on Employment-at-Will
Civil Rights protections
Employment contracts, union or individual
Market forces
Whistleblower statutes
Threats of wrongful discharge suits

3. Civil Rights Restrictions
Murphy v. American Home Products Corp (1983)
Age discrimination used to challenge at-will termination

4. Violation of Public Policy
Employees may not be fired for exercising rights protected by law
Worker comp claims
Refusing to commit perjury
Absence for jury duty
Voting as stockholder
Requires “clear and legal mandate” re public policy

5. Whistleblowing Palmateer v. International Harvester (1981)
Employee was wrongfully discharged after reporting coworkers involved in crime
Sheets v Teddy’s Frosted Foods (1980)
Employee was wrongfully discharged for insisting company comply with federal Food, Drug and Cosmetic Act

6. Expressed or Implied Promise of Employment
Touissant v Blue Cross and Blue Shield of Michigan (1980)
Employees had been wrongfully fired for no apparent reason, though the employer said “You can have your job as long as you do your job.”
Employer also had written policy requiring good cause, warnings, and a disciplinary hearing before discharge

7. Good Faith and Fair Dealing
Fortune v. National Cash Register Company (1977)
NCR had fired long-term employee who was “at will”, but the employer sought to avoid paying large commission through the discharge, demonstrating bad faith
Only 11 states recognize covenant-of-good-faith exception to employment at will

8. Tortious Conduct
Tortious conduct – violation of a duty owed to others – variation on bad faith
Monge v. Beebe Rubber Company (1974)
Female employee was “abusively discharged” for refusing to date supervisor
Now that problem would be handled under Civil Rights sexual harassment protection

9. Layoffs Firefighters Local Union 1784 v. Stotts (1984)
Supreme Court Ruled a layoff illegal when more senior white employees were laid off while less senior black employees were retained – seniority is a legitimate basis for discharge
Worker Adjustment and Retraining Notification Act
Complicated law affecting employees in facilities to be shut down

10. Broad practice implications
Have written policy manual, reviewed by employee
Use positive employee relations approach
Know the legal context of your business operations
“Golden Rule” – do to others as you would have them do to you
Keep an excellent employment attorney on retainer