What does the term "at-will employment" mean?

The term "at-will employment" refers to an employment arrangement where either the employer or the employee can terminate the employment relationship without cause or prior notice. This means that an employer can dismiss an employee for any legal reason, or even no reason at all, and conversely, an employee can resign from their position without the need to provide a justification or notice.

This arrangement provides both parties with flexibility; it allows employers to make staffing changes based on business needs while giving employees the freedom to leave for any reason they choose. However, there are important legal limitations to this concept—employers cannot terminate employees for reasons that violate federal or state laws, such as discrimination or retaliation.

Understanding "at-will employment" is essential as it forms a foundational principle in U.S. labor law affecting many employees across various industries.