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Summary of differences between federal and state regulations
The general at-will employment doctrine is what employers generally refer to unless there are state laws that provide more detail. In Arizona, the employment relationship is considered to be severable at the will of either the employer or employee unless there is a written contract to the contrary.
State courts have recognized the concept of an “implied contract” exception to the at will employment concept; that is, courts have found contractual obligations in an employer’s expressed oral or written assurances that employees would only be discharged for cause. Assurances may include oral promises or guidelines found in handbooks.
Both parties must sign the contract, or the terms of employment must be specified in the employee handbook or similar document.
State courts have recognized the concept of public policy exception to the at will employment concept; that is, it is illegal for an employer to terminate an employee for refusing to break the law on behalf of the employer.
The courts also recognize an exception of “an implied covenant of good faith and fair dealing,” meaning that employers are not allowed to fire an employee who has worked for the company for many years, or who is due to receive anticipated financial benefits or a retirement. The courts have said that employers must conduct themselves fairly and in good faith.
State
Contacts
Industrial Commission of Arizona
Regulations
Arizona Statutes offer employees protection from discharge if the employer breaks public policy. The statutes also offer protection against constructive discharge.
A.S. §23-1501. Constructive discharge.
(Statute discusses several aspects of the employment relationship and employee termination.)
A.S. §23-1502. Severability of employment relationships; protection from retaliatory discharges; exclusivity of statutory remedies in employment.
(Statute defines activities that are considered grounds for constructive discharge, and the employee’s responsibilities for notifying the employer.)
Federal
Contacts
None.
Regulations
None.