The state of Montana is known for its beautiful landscapes, its abundant natural resources, and much more. But in the policy world, it’s known to many as the only state with just-cause, as opposed to at-will, employment. It’s a system that restricts the ability of employers to fire workers, but avoids litigation by providing clear standards. Workers across the country are seeking more protections after the experience of the pandemic, pushing union drives like the high-profile efforts at Amazon and Starbucks or simply relying on their leverage in a tight labor market. The Montana model can help inform debates about how to balance those worker protections with dynamic labor markets. Some states, including Illinois, have already considered moving to a just-cause system similar to Montana’s.
The muddy middle
At-will employment is the default employment scheme in the United States and, in its purest form, entails maximum flexibility for employers to fire employees without justification. However, across the 1970s and 1980s, U.S. state courts carved out a variety of exceptions to this regime in the spirit of protecting workers from the worst excesses of their employers. Across the United States, three common exceptions emerged: the public policy exception prevents employers from firing employees for behavior that contributes to the public good, like missing work to perform jury duty; the good faith exception prevents employers from firing workers to intentionally deprive them of...
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