Employment-at-Will: Definition, Advantages & Implied Contracts


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Yum-O Donuts regularly dumps its used cooking oil in the sewer behind the shop. Darla, an at-will employee, has complained to her manager about this practice. A few weeks go by and nothing is done to correct the issue, which compels Darla to file an official complaint with the Environmental Protection Agency. Shortly after the EPA begins an investigation, Darla is fired. What is her termination an example of?

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1. Which of the following statements regarding at-will employment is FALSE?

2. Meena is six months pregnant and is an at-will employee. Her boss Irwin would like to replace her with someone who has no children but knows he cannot legally fire her because her pregnancy puts her in a federally-protected class. Irwin uses Meena's computer to delete some critical company reports and blames her for it. He then uses this as a reason to fire her. This is an example of:

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About This Quiz & Worksheet

This quiz/worksheet combo will assess your understanding of employment-at-will contracts through questions about employee/employer rights and real-world examples.

Quiz & Worksheet Goals

In these assessments you'll be tested on:

  • The definition of employment-at-will
  • Differences between legal and illegal firings
  • The meaning of implied covenant of good faith and fair dealing

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related employment-at-will lesson
  • Defining key concepts - ensure that you can accurately define main phrases, such as at-will and implied contract
  • Knowledge application - use your knowledge to answer questions about legal and illegal firings

Additional Learning

To learn more about employment contracts, review the accompanying lesson called Employment-at-Will: Definition, Advantages & Implied Contracts Implied Contracts. This lesson will help you:

  • Define employment-at-will
  • Understand limits on employment-at-will
  • Define good cause
  • Learn the legal history of employment-at-will
  • Define implied contract
  • Know the meaning of an implied covenant of good faith and fair dealing
  • Identify examples of legal and illegal firings
  • Define public policy