At-will employment principles and legal exceptions in the US

At-will employment is the default standard in most of the United States, including California, allowing either an employer or an employee to terminate a working relationship at any time, with or without notice or a specific reason. In California, this principle is established under Labor Code section 2922 for employment that has no specified term.

However, at-will employment is not absolute and is subject to several legal limitations. Employers are prohibited from terminating employees for illegal reasons, such as discrimination based on protected characteristics like race, religion, sex, age, disability, or national origin.

Other significant exceptions include protections against retaliation for whistleblowing, reporting illegal conduct, or asserting legal rights. Employees are also protected under public policy, which prevents termination for refusing to break the law or for exercising legal duties, such as federal jury service or taking FMLA leave.