Understanding At-Will Employment in Pennsylvania: What Is At-Will Employment?

This article is the first in a series that will define at-will employment, clarify common misconceptions, explore exceptions to the presumption of at-will employment, and examine how employers can better assess and avoid risks associated with ending employment relationships.

“At-will employment” is one of the most frequently used concepts in employment law, and its principles form foundational legal issues in many employment disputes. 

Given the prevalence of the doctrine and its principles, many employers are familiar with the general concept of at-will employment. However, persistent misconceptions about the doctrine can cause even sophisticated employers to overlook its nuances and expose their businesses to unnecessary risk.

What Is At-Will Employment?

At-will employment is an employment relationship that may be terminated by either party, at any time, with or without notice, and for any lawful reason — or for no reason at all. Under Pennsylvania law, most private-sector employment relationships are presumed to be at will by default. 

At-will employment is often mischaracterized as any employment relationship without a written contract for employment. While the absence of a contract remains a common characteristic of an at-will relationship, whether a contract applies to a particular relationship does not necessarily mean that the relationship is, or isn’t, at will. 

Instead, courts consider whether any of the following elements exist to determine whether a particular employment relationship is at will: (1) whether the employment is for a definite term, (2) whether the employee may be discharged only for just cause, or (3) whether the relationship is a recognized public-policy consideration. If one or more of these elements exist, the employment relationship loses its at-will presumption.

Understanding the Limits of At-Will Employment

Pennsylvania’s at-will employment doctrine gives employers flexibility to make personnel decisions based on changing operational needs, individual performance, and other legitimate business considerations. It also gives employees the freedom to choose where they work. 

However, the doctrine of at-will employment does not shield employers from every risk associated with terminating an employment relationship. As a result, employers must always scrutinize whether the at-will presumption has remained intact and whether there are other factors that could create a risk of legal exposure prior to terminating any employee.

The next article in this series will address one of the most common factors that may impact the presumption of at-will employment: contracts.

If you or your business has questions about your employment practices, need guidance evaluating potential employment-related risks, or could benefit from an evaluation of your compliance with Pennsylvania employment laws, please contact Robert D. Kaufman. 

This article is provided for general informational and educational purposes only. It does not constitute legal advice and does not create an attorney-client relationship. Every employment situation is unique, and employers should consult legal counsel about their specific circumstances.

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