Hiring and Firing U.S. Employees

Most employment relationships in the United States are made on an “at-will” basis. This offers employers considerable flexibility in hiring and firing. Generally, employers may elect to hire or fire anyone for any non-discriminatory reason, including for no cause. An employee is also permitted to quit or leave at their discretion. The “at-will” doctrine is a major difference between employment rules in the U.S. and in other countries.

As opposed to hiring in Europe, medical evaluations, criminal background checks, and personal and educational references enjoy greater acceptance in the U.S. Nevertheless, it is essential to review the applicable state laws where the hiring will occur to confirm what is allowed. Many states have enacted some limits on criminal background checks, but there remains no nationwide ban. Additionally, although medical evaluations may be allowed under the law, they are not common for most positions. 

Discriminatory protections for employees in the U.S. and Europe are similar. Equal Pay Act rules are also similar. Employers are prohibited from basing their decisions on gender, race, disability, or other protected classes when making decisions about hiring or firing. Certain states have supplemented the federal protections with additional demographic classes, including but not limited to sexual orientation, gender identity, and gender expression, so it is important to review each state’s laws.

Firing employees in the U.S., thanks to the “at-will” concept, is less complicated and less formal. Unless a contract provision exists with the employee, there is no legal requirement for employers to provide notice of termination or severance pay, although industry custom may encourage both. The terms of firing can vary depending on numerous factors, the most significant of which is whether the employer is subject to a specific employment contract, a collective bargaining agreement, or a separation agreement. Unfortunately, the added flexibility in the U.S. is accompanied by greater involvement by the courts. Terminated employees in the U.S. are more likely to litigate and seek judicial remedies than their European counterparts.

Disclaimer:

This article is a form of attorney advertising. Hodgson Russ LLP provides this information as a service to its clients and other readers for educational purposes only. Nothing in this blog should be construed as, or relied upon, as legal advice or as creating a lawyer-client relationship.