Why At-Will Employment is Bad For Employers and Just Cause is Good For Them

Source: Ellen Dannin, Labor Law Journal, Vol. 58 no. 1, Spring 2007

…The at-will regime does not exclude judges from examining (or “second guessing”) employer decisions. In addition… it ill serves employers. If this is true, then it ill serves our economy and our national interests. …There is no empirical evidence that at-will employment has a positive effect on our economy. There is evidence that an at-will employment regime does not prevent litigation. In fact, there is no evidence that an at-will regime results in less litigation than a just-cause employment regime. There are reasons to believe that employers would be better off as managers with a just-cause employment regime. Finally, but more theoretical, there is a cost to society from maintaining at-will.

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