by On Feb. 12, 2025, a bill to enact the National Right to Work Act was introduced in the U.S. Senate. Similar bills have been unsuccessful in the past, but national news commentators reported that there appeared to be greater support for the bill this session. In reporting on the bill’s introduction, some news reports confused right-to-work with another employment law concept, at-will employment. Both legal concepts significantly affect the employment relationship but in very different ways.
Right-to-Work Laws
A right-to-work law prohibits unions from exercising a common contractual requirement that workers join a union as a condition of employment. It gives workers the right to choose if they want to join a union and pay union dues even when a union and their employer enter into an agreement that purports to require union membership. Also known as “open shop” laws, supporters of right-to-work laws argue that they help attract new businesses and create jobs by reducing the power of unions and giving employers greater flexibility in hiring and firing.
Unions and other opponents of these laws argue that right-to-work laws weaken unions, lower wages, and reduce workers’ benefits by making it more difficult for unions to negotiate collective bargaining agreements. They also argue that right-to-work laws allow non-union employees to benefit from union-negotiated contracts without contributing to the cost of the negotiation.
Half of U.S. states have right-to-work laws, including the upper Midwest states of Wisconsin, South Dakota, North Dakota, Iowa, and Nebraska.
At-will Employment
At-will employment, on the other hand, refers to the rights of employees and employers to end the employment relationship when there is no contract between the employee and the employer providing otherwise. At-will employment means that an employee has the right to quit their job for any reason or no reason without facing legal consequences or penalties simply for quitting. It also means that an employer has the right to terminate an employee for any reason or no reason at all, as long as it is not based on an unlawful basis, such as discrimination or retaliation.
In the absence of an employment contract or collective bargaining agreement, at-will employment is the default private employment relationship in all states except Montana. A Montana statute requires good cause for the termination of most private employees.
Employers in states other than Montana should be aware that under many state court applications of the at-will employment doctrine, policies and documents that require “good cause” for termination or that set other conditions for termination can change the employment relationship from an at-will employment relationship to one setting additional termination standards for employers. Offer letter templates, employee handbooks, and other documents describing employment expectations should be reviewed carefully to ensure that the employer has not inadvertently changed the intended employment relationship under the laws of their state. Consult with legal counsel regarding state law interpretations.
