At-Will Employment - Indiana

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. This is a situation in which there is a lack of laws or contracts that narrow the reasons for which employees may be terminated. Where such laws or contracts exist, they must be adhered to.

Indiana is an at-will employment state. An employment relationship for no specific duration may be terminated at any time at the will of the either the employer or the employee for any reason or for no reason at all. Under this rule, the reason for terminating an at-will employment relationship does not matter. Whether the reason was fair, immoral or just plain unfair is of no consequence.

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.

State

Contact

Indiana Department of Labor

Regulations

Pending HB 1345-2 (Filed 01/29/2002) prevents discharge except for “just cause,” and abrogates the common law doctrine of employment at will. The Bill allows for civil action against employers by former employees.

Federal

Contacts

None.

Regulations

None.