--- title: What Is At-Will Employment? --- [![ADP](https://sbshrs.adpinfo.com/hs-fs/hubfs/ADP_Logo_Digital_Color.png?width=66&height=30&name=ADP_Logo_Digital_Color.png "ADP")](https://www.adp.com/) - Select an issue - [Summer 2026](https://sbshrs.adpinfo.com/summer-2026-hr-newsletter) - [Spring 2026](https://sbshrs.adpinfo.com/newsletter/spring-2026-hr-newsletter) - [Winter 2026](https://sbshrs.adpinfo.com/newsletter/winter-2026-hr-newsletter) - [Fall 2025](https://sbshrs.adpinfo.com/newsletter/fall-2025-hr-newsletter) # HR Newsletter #### Winter 2022 Edition ## What Is At-Will Employment? ![](https://sbshrs.adpinfo.com/hubfs/What-Is-At-Will-Employment.png) At-will employment generally means that, absent certain exceptions such as an expressed or implied contract or public policy, either you or the employee can terminate the employment relationship at any time and for any reason, as long as the reason is a lawful one. At-will employment is recognized in every state but Montana. ### Implied contracts: You can jeopardize an employee's at-will status with implied contracts, such as those created by oral or written statements. For instance, "don't worry—you will always have a job with us" could be interpreted as a promise of permanent employment. Certain policies and practices can also create an implied contract. For example, if drafted incorrectly, discipline policies may lock you into taking one course of action, such as policies that indicate a verbal warning for all first offenses, a written warning for all second offenses, and so on (commonly known as progressive discipline), when the situation may call for a more severe immediate course of action, such as termination. ### Reinforcing at-will employment: Here are some best practices for reinforcing at-will employment: - Prominently display an at-will employment statement in the beginning of your employee handbook (except in Montana, where at-will employment isn't recognized). Reinforce at-will status in your handbook acknowledgment form as well. Here's an example of an at-will statement: *Employment with \[Company Name\] is "at-will." This means employees are free to resign at any time, with or without cause, and \[Company Name\] may terminate the employment relationship at any time, for any lawful reason, with or without cause or advance notice. As an at-will employee, you are not guaranteed employment with \[Company Name\] for any set period of time.* *The policies set forth in this employee handbook are the policies that are in effect at the time of publication. They may be amended, modified, or terminated at any time by \[Company Name\], except for the policy on at-will employment, which may be modified only by a signed, written agreement between the President and the employee at issue. Nothing in this handbook may be construed as creating a promise of future benefits or a binding contract between \[Company Name\] and any of its employees.* - Avoid policies that restrict your ability to decide what type of discipline is appropriate given the severity of the offense and the employee's history of misconduct. State that violations may result in disciplinary action, up to and including termination, and that the company reserves the right to decide what disciplinary action to take in any given situation. Keep in mind, however, that treating employees fairly is key and similar situations and past practices should guide and impact the disciplinary action that you take. - Train all supervisors to avoid using language or making statements that may be construed as an offer or promise of future employment. [Prev](https://sbshrs.adpinfo.com/equal-pay-what-you-need-to-know?hsLang=en) [Home](https://sbshrs.adpinfo.com/winter-2022-hr-newsletter?hsLang=en) [Next](https://sbshrs.adpinfo.com/winter-2022-hr-compliance-calendar?hsLang=en) ### Recommended for you: [\[Podcast\] Employee termination: Key steps to consider](https://hrpreneur.podbean.com/e/employee-termination-key-steps-to-consider/) [Never Do This When Terminating an Employee](https://sbshrs.adpinfo.com/blog/never-do-this-when-terminating-an-employee?hsLang=en) This content is based on generally accepted HR practices, is advisory in nature, and does not constitute legal advice or other professional services. ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content. Employers are encouraged to consult with legal counsel for advice regarding their organization's compliance with applicable laws. This content is current as of the published date.  ADP, the ADP logo, HR{preneur}, RUN Powered by ADP and Always Designing for People are registered trademarks of ADP, Inc and its affiliates. All other marks are the property of their respective owners. Copyright © 2026 ADP, Inc. All rights reserved. [Privacy at ADP](https://www.adp.com/privacy.aspx)