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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. 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.
Texas law says that absent an express agreement to the contrary, either party in an employment relationship may end the relationship or change the terms and conditions of employment at any time for any reason, or even for no particular reason at all, with or without notice.
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
Regulations
There are several exceptions to “at-will” employment in Texas, both statutory and court-made:
- statutory exceptions
- termination may not be based upon a person's race, color, religion, gender, age, national origin, disability, or citizenship, veteran status and sexual orientation
- legally protected activity
- bringing suspected wrongdoing to the attention of competent government authorities (state and federal whistle blower statutes)
- filing various types of claims (OSHA, federal wage and hour, workers' compensation, employment discrimination, etc.)
- military duty
- jury duty
- voting
- engaging in union activity
- common law exceptions (i.e., exceptions found in court decisions)
- refusal to commit a criminal act
- contractual - if a discharge would violate an express employment agreement, it would be a wrongful discharge; includes collective bargaining agreements
- terminating employees to avoid paying them pension benefits
- discharging employees for reporting violations in handling of hazardous chemicals
In a recent Texas case, a court ruled against a company that had failed to enforce its anti-nepotism policy for 17 years and then suddenly fired an employee who was known all that time to have violated the policy.
Federal
Contacts
None.
Regulations
None.