I regularly field calls from small business owners who describe a problem employee to me and then ask, “Do I have good grounds to terminate the employee?” Many such callers are surprised when I explain to them that, in North Carolina, businesses technically don’t need any grounds for terminating an employee. That is because North Carolina adheres to the doctrine of employment-at-will.
Employment at Will: What it means for employers
North Carolina employers are free to terminate employees for a good reason, a bad reason, or no reason at all. Taken to its literal extreme, I explain to clients, this means that if you have an employee show up to work with an ugly tie, you are perfectly within your legal right to tell him, “Your tie is ugly. Pack your things. You’re fired!” Of course, such a termination would be terribly unfair. It would also be terribly foolish. But it wouldn’t be illegal.
Exceptions to the Rule
Like any good rule, however, the employment-at-will doctrine has exceptions – lots of them. For instance, under various state and federal laws, it is illegal to terminate employees because of:
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