For any reason or no reason at all - Ohio's At-Will Employment

 

 

It is often tucked into the fine print of a job application and presented in an obscure section of employee handbooks that few people read. However, it is one of the most important legal documents of any employer-employee relationship.

Welcome to your terms of employment.

 

In the United States, every state except Montana has established an employer-employee relationship that is legally considered “At-Will.” The United States is one of just a few countries in the world that permits employers to create at-will employment policies. Most countries have laws that require employers to demonstrate “cause” for terminating an employee.

The reasons for establishing at-will employment policies include deferring to employer wishes. The freedom to work without a contract and the philosophy of working at will is more productive than granting workers legally sanctioned job security.

What Does At-Will Employment Mean?

 

An at-will employment agreement allows employers to fire employees without having to give a good reason for the termination. The labor relationship also means employees have the right to leave a job and not provide a basis for quitting.

It is not just the leverage of terminating an employee that gives companies the legal upper hand in labor relationships. At-will employment agreements permit companies to alter the terms of the employer-employee relationship, without first giving workers a notice. For example, a company can change its benefits policy, as well as reduce overtime pay, as long as the new pay structure adheres to federal government guidelines for overtime compensation.

At-Will Employment and Formal Labor Contract

 

At-will employment is considered the default labor agreement model for American workers in every state besides Montana. However, it is possible to alter an at-will employment agreement by including a formal contract.

A formal labor contract signed by both the employer and employee has a clause that states an employer can terminate a worker only for cause. Labor contracts typically evolve from at-will employment agreements for highly compensated managers and workers that a company considers vital for operations.

How Does Ohio Treat At-Will Employment?

 

Ohio employment law also includes an exception for formal labor contracts that supersede the legal power of at-will employment agreements. Here are four additional exceptions to at-will employment agreements that Ohio employment law allows.

Implied Contract

 

Ohio law states a formal written contract is not required in cases that involve revocation of an at-will employment agreement. Information presented in an employee handbook, verbal employment discussions initiated by supervisors, and written amendments to the content found in an employee handbook all constitute examples of implied contract modifications of an at-will employment agreement in Ohio.

State and Federal Laws

 

A large number of state and federal laws forbid employers from terminating employees for discriminatory reasons. The Civil Rights Act of 1964 lists the reasons why employers cannot fire workers, including age, race, gender, and religion.

Other state and federal laws that are not bound to the at-will employment labor doctrine include whistleblower and workers’ compensation statutes. Read more..