Arizona’s default employment relationship allows either the employer or the employee to terminate the employment relationship at any time, for any legal reason, or for no reason at all, with or without notice. A common analogy is comparing it to renting an apartment on a month-to-month lease; either party can terminate the agreement with proper notice. This flexibility extends to both hiring and firing decisions, although certain discriminatory practices remain prohibited. A clear understanding of this principle is vital for both employers and employees operating within the state.
This system offers significant advantages to businesses by streamlining workforce adjustments and reducing the potential complexities and costs associated with terminating employment. This adaptability is particularly valuable in today’s dynamic economic landscape. Simultaneously, it provides employees with the freedom to pursue new opportunities without being bound by long-term contracts. However, it’s important to note that this principle is subject to specific exceptions, including public policy considerations, implied contracts, and federal and state anti-discrimination laws. Historically, this doctrine has been the predominant model for employment relationships in the United States and continues to shape the workplace environment in Arizona.
