Illinois is an employment-at-will state. This means that when an Illinois employee does not enter into a written employment contract, the employer or the employee can end the employment relationship at any time, for any reason, with or without notice. However, like many rules, exceptions have arisen over time due to the unequal bargaining power between employees and employers and other policy considerations. Courts and legislatures have increasingly recognized that employers frequently have advantages over employees when negotiating the employment relationship. The following will discuss two significant exceptions to employment-at-will status in Illinois.
First Significant Exception – Public Policy Exception to Employment at Will
The first significant exception to Illinois employment-at-will status is the public policy exception. This means that an employee is wrongfully terminated when the termination is in violation of a well-established public policy within the state. For example, in most states, an employer cannot terminate an employee for filing a worker’s compensation claim after being injured on the job.
Under the public policy exception, an employer cannot terminate an employee based on discrimination such as race, color, religion, sex, national origin, ancestry, citizenship status, age, marital status, physical or mental handicap, and other protected categories. An employee’s right against discrimination with respect to employment is also protected under the Illinois Human Rights Act.
Additionally, an employer cannot terminate an employee as a retaliatory discharge. This means the employer cannot fire an employee because the employee complained about illegal conduct, such as discrimination, harassment, failure to pay overtime, or workplace safety violations. Furthermore, an employee cannot be terminated for refusing to commit an illegal act asked by the employer, such as making false statements in a court proceeding concerning his or her employer.
Second Significant Exception – Implied Contract Exception
The second significant exception to Illinois employment-at-will status is the implied-contract exception. This exception occurs when an implied contract is formed between an employer and employee, even though no express written contract regarding employment actually exists. As an employer trying to preserve employment-at-will status, it is important not to make a verbal promise or written representation to an employee regarding job security or term of employment.
This exception can also manifest in the context of an employer’s policy manual or handbook. One example is when the manual or handbook includes mandatory language stating that the employer will follow specific procedures before terminating an employee. This could be interpreted as a direct conflict with the employment-at-will doctrine and provide an employee with implied contract rights. As an employer trying to preserve employment-at-will status, it is important to protect against such interpretations.
This issue can be remedied by including an express waiver in a company employee manual or handbook clearly stating that the guidelines in the manual or handbook are not intended to create contract rights.
It is also advisable to have a policy to request that each employee sign a receipt acknowledging that the employee has received the manual or handbook, and has read and understands the terms.
For more information about this article, or Illinois employment law in general, please feel free to contact John W. Albee at Albee Law PC via telephone at (312) 279-0115 or via email at jalbee@albeelaw.com.
