In New York City, the standard employment relationship is presumed to be “at will.” This means that an employer can generally terminate an employee for any legal reason, or no reason at all, with or without notice. Conversely, an employee can leave a job for any reason, or no reason at all, with or without notice. For example, an employer could dismiss an employee because of a business slowdown, personality conflicts, or even a change in management preferences. Likewise, an employee can resign to pursue another opportunity, return to school, or for personal reasons.
This flexibility benefits both employers and employees by allowing businesses to adapt quickly to changing economic conditions and employees to pursue better opportunities. However, this principle is subject to several important exceptions. Federal and state laws prohibit termination based on protected characteristics like race, religion, gender, age, or disability. Additionally, contractual agreements, union membership, and implied contracts based on employer policies can modify the at-will presumption. The historical context for at-will employment stems from the late 19th century, arising as the dominant model in contrast to earlier forms of indentured servitude or fixed-term employment contracts. It reflects a balancing act between the needs of employers and employees in a dynamic labor market.