What States Have Free Will? States with At-Will Employment

While all states recognize at-will employment, certain states impose additional restrictions on top of federal rules. The following states have limits on at-will employment.

What you’ll discover:

Which states are exempt from the Public Policy Exemption?
Which states allow for the Implicit Contract Exemption?
Which states have a Good Faith Exemption Covenant?

At-will employment is legal in every state. Several states, however, set restrictions on it. These restrictions are in addition to those imposed by federal law on all states. The following is a list of states that have imposed different limits or amendments to at-will employment at the state level.

Some states need three main exceptions: the public policy exception, the implicit contract exemption, and the covenant of good faith exception.

Which states are exempt from the Public Policy Exemption?

The public policy exemption is comparable to federal standards, but it may be pursued at both the state and federal levels. It is one of the most often used exceptions, and the following states are the only ones that do not obey it:

Alabama
Florida
Georgia
Louisiana
Nebraska
New York City
The state of Rhode Island

Which states allow for the Implicit Contract Exemption?

The implied contract exemption applies in places where employers require workers to sign at-will employment contracts but add a language in the contract or employee handbook that they will only be fired for “just cause” or something similar. It is also widely used, with just the following governments refusing to accept it:

Delaware
Florida
Georgia
Indiana
Louisiana
Massachusetts
Missouri
Montana
The state of North Carolina
Pennsylvania
The state of Rhode Island
Texas
Virginia

Which states have a Good Faith Exemption Covenant?

One of the most extensive exclusions is the covenant of good faith. It effectively compels businesses to dismiss workers solely for reasonable cause, even if the Employee Handbooks or Employment Contracts make no mention of it. It is the most limited exemption, yet it has the largest scope among the states that recognize it. The following states accept this exemption to at-will employment:

Alabama
Arizona, Alaska
California
Delaware
Idaho
Massachusetts
Montana
Nebraska
Wyoming, Utah

If you have a question concerning at-will employment, you should consult with a lawyer in your area.