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Which States Have the Public Policy Exemption?

The public policy exception is similar to the federal requirements, but it can be pursued at the state level as well as at the federal level. It's one of the more widely applied exceptions, and these states are the only ones that do not follow it:

  • Alabama
  • Florida
  • Georgia
  • Louisiana
  • Nebraska
  • New York
  • Rhode Island

Which States Have the Implied Contract Exemption?

The implied contract exception applies in states where employers have employees sign at-will employment contracts but include in the contract or employee handbook the statement that they will only be terminated for "just cause" or something similar. It is also broadly applied, and the only states that do not recognize it are:

  • Delaware
  • Florida
  • Georgia
  • Indiana
  • Louisiana
  • Massachusetts
  • Missouri
  • Montana
  • North Carolina
  • Pennsylvania
  • Rhode Island
  • Texas
  • Virginia

Which States Have the Covenant of Good Faith Exemption?

Covenant of good faith is one of the broadest exceptions. It essentially requires that employers only terminate employees for just cause, even if the Employee Handbooks or Employment Contracts say nothing about that requirement. It is the narrowest exception, but it is the broadest in its application within the states that do recognize it. These are the states that recognize this exception to at-will employment:

  • Alabama
  • Alaska
  • Arizona
  • California
  • Delaware
  • Idaho
  • Massachusetts
  • Montana
  • Nebraska
  • Utah
  • Wyoming

If you have a question about at-will employment, it's best to Consult a Legal Pro near you.

Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.


Written and Reviewed by Experts
Written and Reviewed by Experts
This article was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language.

At Rocket Lawyer, we believe legal information should be both reliable and easy to understand—so you don't need a law degree to feel informed. We follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible.

About this page:

  • This article was written and reviewed by Rocket Lawyer editorial staff
  • This article was last reviewed or updated on Feb 11, 2025

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