Wrongful Termination vs. At-Will Employment

December 22, 2025 by James Walcheske

Some believe that being fired is automatically unlawful, or, conversely, that employers can terminate workers for any reason at all. Both assumptions are incorrect. Understanding the difference between at-will employment and wrongful termination is essential for evaluating your rights and minimizing legal risk. The attorneys of Walcheske & Luzi are here to help you make the distinction between an employer exercising the right of at-will employment and a wrongful termination.

What is At-Will Employment?

Wisconsin follows the doctrine of at-will employment. This means that, in most cases, an employer can terminate an employee at any time for almost any reason, or for no stated reason at all. Likewise, an employee is generally free to leave a job at any time. However, at-will employment does not mean unlimited employer authority. Terminations that violate state or federal law, public policy, or contractual obligations may be unlawful.

What is Wrongful Termination?

Wrongful termination occurs when an employer fires an employee for an illegal reason or in violation of a legal obligation. Even in an at-will employment state, certain reasons for termination are prohibited. A termination may be wrongful if it involves discrimination, retaliation, or interference with protected rights. It may also be unlawful if it violates an employment contract or an employer’s own written policies.

Common Misconceptions Between These Concepts

Here are some common misconceptions that come up when discussing the difference between at-will employment and wrongful termination:

1. “At-Will” Means Employers Can Fire Anyone for Any Reason: This is one of the most widespread misunderstandings. While employers have broad discretion under at-will employment, they cannot terminate employees for reasons that are illegal. For example, an employer may not fire an employee based on protected characteristics such as race, sex, age, disability, religion, or national origin. Terminations tied to pregnancy, military service, or genetic information may also violate the law.
2. A Termination Is Wrongful If It’s Unfair: Even if a termination feels unfair, it doesn’t necessarily mean that it’s unlawful. An employee may be legally terminated for poor performance, personality conflicts, or business restructuring, even if the employee disagrees with the employer’s assessment.

Exceptions to At-Will Employment

Although at-will employment is the default rule, several important exceptions can apply. Employment contracts, whether written or implied, sometimes limit an employer’s ability to terminate without cause. Additionally, employee handbooks or policies can create enforceable obligations if they promise termination only for specific reasons. Wisconsin also recognizes a public policy exception. An employer cannot terminate an employee for refusing to engage in illegal conduct or for complying with legal obligations.

What You Should Do If You Suspect Wrongful Termination

If you believe you were wrongfully terminated, you should document the circumstances surrounding the termination, including relevant emails, performance reviews, and timelines of events. Then, consult with an experienced employment law attorney to help determine if the termination violated the law and what options may be available.

At-will employment provides flexibility for both employers and employees, but it doesn’t eliminate legal protections. By understanding the distinction between at-will employment and wrongful termination, both employees and employers can make informed decisions to protect everyone’s rights. For legal assistance, reach out to schedule a consultation with one of our employment lawyers.