What it Means to Work in an At-Will State
You’ve probably heard Wisconsin described as an “at-will” employment state. But unless you work in employment law, what that means, and what it doesn’t mean, can be a little murky. At-will employment gives both employers and employees considerable freedom to end an employment relationship. Your employer doesn’t need to prove “cause” before letting you go, just as you don’t need to prove you have a good reason before quitting. However, there’s an important distinction that often gets lost: at-will employment does not give an employer permission to break the law.
Understanding that difference can help Wisconsin employees recognize when an unpleasant or unfair workplace decision is simply that, and when it may cross the line into something unlawful.
What Does “At-Will” Employment Actually Mean?
Under Wisconsin’s at-will employment doctrine, an employer generally has the right to terminate an employee for a good reason, a bad reason, or no stated reason at all, provided the reason is not prohibited by law. The same principle works in the other direction. An employee generally has the right to resign whenever they choose without having to establish a legally sufficient reason for leaving.
That can sound like employers hold all the cards, but at-will employment is better understood as a default rule, not an absolute one. State and federal employment laws, along with certain contracts and recognized legal exceptions, can place important limits on an employer’s ability to act against an employee.
“At-Will” Does Not Mean “Anything Goes”
This is where one of the biggest misconceptions about at-will employment comes into play. An employer might legally terminate someone because they aren’t satisfied with the employee’s performance, because the company is restructuring, or even because of a personality conflict. A decision can feel unfair without necessarily being illegal. What an employer cannot do is terminate someone for an unlawful reason.
For example, Wisconsin’s Fair Employment Act prohibits employment discrimination based on several protected characteristics, including race, sex, age, disability, religion or creed, national origin, ancestry, marital status, sexual orientation and military service, among others. Federal laws also provide additional protections against discrimination and other prohibited employment practices.
Wisconsin Recognizes Exceptions to At-Will Employment
Wisconsin courts have also recognized a narrow public policy exception to the at-will rule. Broadly speaking, an employer may face liability when an employee is terminated for fulfilling a legal obligation or refusing to violate a fundamental, well-defined public policy established by existing law. Consider an employer telling an employee to do something illegal as part of their job. If the employee refuses and is fired because of that refusal, simply calling the employment relationship “at-will” does not necessarily insulate the employer from liability.
Unfair and Unlawful Aren’t Always the Same Thing
Losing a job can be frustrating, embarrassing, and financially disruptive. Especially when you believe the employer’s reasoning was wrong. However, the law makes an important distinction between a decision that is unfair and one that is unlawful. Maybe your manager favored another employee. Maybe you were blamed for a mistake you don’t believe was yours. Maybe you received positive feedback for years and then were unexpectedly let go. Those facts can certainly matter, particularly when they are part of a larger pattern. But on their own, they do not automatically establish a legal claim.
The bigger question is often why the employer took the action it did. Was the decision connected to a protected characteristic? Did it happen shortly after you reported unlawful conduct or exercised a protected right? Were you asked to violate the law? Did the employer disregard an agreement governing your employment? Those details can change the legal picture significantly.
Think Your Employer Crossed the Line? Talk to an Employment Attorney.
“At-will” is a starting point for understanding employment law in Wisconsin, not a blank check for employers. If you’ve been fired, demoted, disciplined or otherwise treated differently at work and something about the circumstances doesn’t add up, it may be worth taking a closer look. Emails, performance reviews, written policies, timelines and other documentation can all help an employment attorney evaluate what happened and whether your legal rights may have been violated.
The attorneys at Walcheske & Luzi focus exclusively on employment law and help Wisconsin employees understand where they stand. If you believe an employer’s decision may have crossed the line from unfair to unlawful, contact Walcheske & Luzi to discuss your situation.