When hiring in the United States, one of the most important concepts to understand is at-will employment. Unlike other countries, the U.S. largely operates under this principle, which shapes the employment relationship in ways that can be surprising to international employers and recruitment firms. 

In this blog, we’ll talk about what at-will employment means, which states follow it (and which don’t), and how it compares to the UK’s system. 

What is At-Will Employment? 

At-will employment means that either the employer or the employee can end the employment relationship at any time, with or without notice, and with or without cause. 

However, there are limits – an employer cannot fire someone for discriminatory reasons (e.g., based on race, gender, religion, age, disability), in retaliation for whistleblowing, or in violation of an employment contract. In general, at-will gives employers wide flexibility in managing their workforce. 

For recruitment firms at-will employment could mean faster placement cycles, and quicker revenue generation. 

Which States Have At-Will Employment? 

Nearly all US states follow the at-will employment rule as the default. The exception is Montana. In Montana, after a probationary period (usually six months), employees can only be dismissed for just cause. This makes Montana the only true outlier in the US. 

That said, some states apply exceptions that can limit at-will terminations: 

• Public policy exception – Employees cannot be fired for reasons that violate public policy (e.g., refusing to break the law, filing workers’ compensation claims, serving on a jury). Most states recognize this. 
• Implied contract exception – Certain promises – whether in an employee handbook, offer letter, or even verbal commitments – may override at-will. Most states recognize this, make sure to check your respective state for more detail. 
• Covenant of good faith and fair dealing – A small number of states (including California, Nevada, Delaware) impose a duty of fairness, preventing terminations made in bad faith. 

For most practical purposes, though, it is best that recruitment firms assume that at-will is the baseline across the US. 

At-Will Employment vs. the UK System 

The US approach contrasts sharply with employment law in the UK. The UK generally has more structured employment contracts, and employment is typically governed by these contracts. Notice periods and dismissal procedures are well-defined, offering more job security for workers. 

The statutory minimum notice is one week for each year of service, up to 12 weeks, and contracts may provide longer periods. 

After two years of service, UK employees are protected from unfair dismissal. Employers must have a fair reason (such as redundancy, misconduct, or capability) and follow a fair process. Workers also gain stronger protections once they pass probation periods.  

For international clients used to UK or EU systems, the US model often feels more flexible – but also riskier without proper compliance guidance. 

What Recruitment Firms Need to Know 

For recruitment agencies supporting international employers hiring in the US, at-will employment comes with key considerations: 

• Contracts still matter – even though at-will is the default, most US offer letters explicitly state it to avoid disputes. 
• Candidate communication – US-based candidates are familiar with at-will, but overseas talent may need clarification. 
• Termination risks – at-will does not protect against claims of discrimination, retaliation, or breach of contract. Terminations must always comply with federal and state laws. 
• Employer liability – wrongful termination lawsuits can still occur. Recruitment firms should advise clients to document reasons for termination and follow fair procedures. 
• State-level nuances – while at-will dominates, exceptions vary by state. An EOR ensures compliance with local rules. 

At-will employment is a defining feature of the US labor market. For recruitment firms entering the market, understanding its scope, exceptions, and risks is crucial Working with an experienced Employer of Record will allow you to hire confidently and compliantly across the US – get in touch with the team today.