What Does 'Employed At Will' Really Mean?

Employment Law
Written By Adam Rodrigues

Your Rights in Tennessee and Beyond

The phrase "Tennessee is an at-will employment state" is one of the most disheartening things a current or former employee can hear. This legal rule is routinely used by employers to shut down arguments, silence complaints, and convince you that a firing, a demotion, or a hostile action was simply their right. When you are feeling anxious, confused, and worried about your family’s financial stability, "at-will" feels like a final word.

But it is not. As a post-conviction and employment law firm, Adam Rodrigues Law specializes in fighting against institutional power, whether that power is a prosecutor or a former employer.

While the at-will doctrine is the default rule, it does not give any employer, large or small, the right to violate federal or state law. The law has carved out powerful, specific exceptions that void the at-will relationship. If your situation fits any of these exceptions, you potentially an actionable path to fight for your rights and/or lost wages.

 

TL;DR

  • “At-will employment” does not give employers unlimited power—they can fire you for any reason except an illegal one, such as discrimination, retaliation, or violating public policy.

  • The key question is not whether a firing was fair, but whether it was unlawful, and Tennessee has several state-specific protections employees often don’t realize they have.

  • Strict deadlines apply: 180 days for THRA, 300 days for EEOC, 1 year for wrongful discharge, 2–3 years for wage claims.

  • If your employer’s stated reason is simply a cover for something illegal, you may have a strong case—and the at-will defense could collapse.

 

What Does 'At-Will' Employment Really Mean?

In all but one state (Montana), employment is presumed to be "at will." The core principle is deceptively simple: your employer can fire you for any reason, a bad reason, or no reason at all, as long as the reason is not specifically illegal.

This standard is often used to justify terminations rooted in personality clashes, small mistakes, or arbitrary decisions. For example, an employer could legally fire you for wearing the wrong color socks, even if that feels deeply unfair. This is the realm of the "bad but legal" firing.

The harsh reality of at-will employment is that the law does not care about whether your termination was "fair," "nice," or "reasonable." Employers can be arbitrary, shortsighted, or even incompetent, and the termination remains legal. The only thing that legally defeats the at-will presumption is an action that violates a fundamental statutory or constitutional protection. Therefore, your legal strategy must pivot away from arguing general unfairness and focus exclusively on proving that the employer’s decision falls into one of three narrow, but powerful, exceptions to the rule: discrimination, unlawful retaliation, or a clear public policy violation. The moment an employer’s decision touches on a protected category, the "at-will" defense may collapse.

Key Point: Your fight is not about fairness; it is about legality. You are fighting to prove the employer’s stated reason for termination (ie. restructuring or poor performance or poor culture fit) was nothing more than a cover, or a pretext, the employer’s stated reason for firing you that hides the actual, unlawful motive.

Attorney Insight

Honestly, this is toughest pill to swallow for my clients— that an employer can fire you for an “bad, but legal” reason like a personality conflict or a small mistake.

As long as it's not an illegal reason, like discrimination or retaliation, unfortunately this is allowed.

However, our job is to find the illegal reason, “the pretext,” hiding beneath the unfair one.

 

Exceptions to 'At-Will' Termination:

Before diving into the exceptions, it’s important to understand this: most at-will cases turn not on the fairness of the employer’s decision, but on whether the employer crossed a legal boundary. These next categories are the narrow but powerful exceptions where the law overrides the at-will rule entirely. If your situation falls into any one of these categories, your employer no longer has the protection of the at-will doctrine.

Exception 1: Discrimination Based on a Protected Class

The most potent and common exception to the at-will rule is discrimination. Federal and state laws establish specific protected classes, making it illegal to base any employment decision (hiring, firing, compensation, promotion) on a person’s membership in that class.

A. Federal Coverage : Title VII and the ADA

Federal law, primarily Title VII of the Civil Rights Act of 1964, Americans with Disabilities Act (ADA), prohibits discrimination for employers with 15 or more employees based on characteristics like:

The crucial limitation here is employer size: these federal laws generally only apply to employers with 15 or more employees (20 or more for the ADEA).

B. The Tennessee Human Rights Act (THRA) Advantage

The State of Tennessee offers broader protection through the Tennessee Human Rights Act (THRA) (T.C.A. § 4-21-101 et seq.). This is often the saving grace for many employees because the THRA typically applies to employers with 8 or more employees. This state law provides crucial coverage for thousands of individuals working for smaller, local businesses that fall below the federal 15-employee threshold.

180 Day Critical Deadline: Unlike many other states, Tennessee has a strict deadline that requires immediate action. To pursue a claim under the THRA, you must file a charge of discrimination with the Tennessee Human Rights Commission (THRC) or the EEOC within 180 days of the last discriminatory act. If you miss this six-month deadline, your state claim is permanently barred. There are virtually no exceptions to this rule, so fast legal review is essential.

If you work for a small employer (8 to 14 employees) in Tennessee and want to pursue a discrimination or wrongful termination claim, time is of essence from the minute you experience illegal treatment.

Employer Size & Deadline Guide (Federal & Tennessee)

  • Title VII (42 U.S.C. § 2000e) (race, sex, religion, etc.): Generally covers employers with 15+ employees. In Tennessee, most EEOC charges must be filed within up to 300 days of the discriminatory act.

  • ADA – Title I (employment & disability): Covers private employers with 15+ employees, plus state and local governments, employment agencies, and labor unions. EEOC filing deadlines usually mirror Title VII (up to 300 days in Tennessee).

  • ADEA (age 40+): Covers private employers with 20+ employees, all state and local government employers, employment agencies, and most labor unions (typically 25+ members). EEOC deadline is generally up to 300 days in Tennessee.

  • Tennessee Human Rights Act (THRA) : Covers Tennessee employers with 8+ employees and requires most state discrimination complaints to be filed within 180 days.

Exception 2: Retaliation—Punished for Doing the Right Thing

Retaliation occurs when an employer punishes you for engaging in a “protected activity.” This is arguably the most common ground for a successful wrongful termination claim because the timing is often highly suspicious. You may have a claim if your employer punishes you (while employed or through termination) for:

  • Filing a Charge or Complaint: Punishing an employee for filing or being a witness in an EEOC charge, complaint, investigation, or lawsuit.

  • Opposing Discrimination: Communicating with a supervisor about employment discrimination or harassment, or refusing to follow orders that would result in discrimination.

  • Requesting Accommodation: Requesting accommodation for a disability or a religious practice.

  • Complaining about Wage Violations: Opposing wage violations, such as not being paid overtime.

Retaliation is not limited to termination. An employer may be liable for retaliation if they increase scrutiny, transfer an employee to a less desirable position, give a lower performance evaluation than warranted, or make the person's work more difficult because of their protected activity.

Key Point: Federal retaliation protections apply even if the original complaint isn’t proven—only that it was made in good faith.
Source: EEOC Guidance

A. The Tennessee Public Protection Act (TPPA)

For employees in Tennessee who report or refuse to participate in illegal activities, the controlling statute is the Tennessee Public Protection Act (TPPA), T.C.A. § 50-1-304. This is Tennessee's dedicated whistleblower law, and it is crucial to understand its strict requirements.

The TPPA protects any employee, regardless of the employer’s size, who is discharged solely for:

  1. Refusing to remain silent about illegal activities.

  2. Refusing to participate in illegal activities.

Defining "Illegal Activities" and Reporting

The scope of activity protected by the TPPA is broad, covering violations of:

  • Federal or state criminal or civil codes.

  • Any regulation intended to protect public health, safety, or welfare.

Examples of protected activities include reporting financial fraud, violations of OSHA safety rules, patient abuse in a healthcare setting, or environmental contamination.

Crucially, case law interpreting the TPPA requires the employee to report the illegal activity to someone other than the alleged wrongdoer (e.g., reporting internal fraud to the CEO instead of the supervisor committing the fraud, or reporting safety violations to an external state agency).

The Critical "Sole Reason" Standard (The Legal Gauntlet)

This is the most significant hurdle in a Tennessee whistleblower case, and it is where the law is stacked against the employee.

Prior to 2014, Tennessee allowed employees to bring a claim under the Common Law Retaliatory Discharge standard, which only required the whistleblower's activity to be a "substantial factor" in the termination.

However, in 2014, the Tennessee General Assembly mostly eliminated this common law claim, making the TPPA the primary remedy for this type of whistleblowing. This forces almost

every plaintiff to meet the extremely difficult "sole reason" standard.

To prevail under the TPPA, you must prove that the refusal to participate or remain silent was the sole reason for the termination. This means that if your employer can successfully demonstrate that any other legitimate reason played a role, even a seemingly minor one like a single instance of tardiness, a personality conflict, or a minor policy violation, the TPPA claim will likely fail.

Remedies and Damages under the TPPA

A critical advantage of the TPPA is that a prevailing employee may recover reasonable attorney's fees in addition to traditional damages like back pay and front pay. However, damages for non-pecuniary losses (such as pain and suffering or emotional distress) are capped based on the size of the employer.

B. Other Protected Activities That Prevent Retaliation

Beyond the TPPA, retaliation is illegal when tied to other protective statutes:

  • Filing a Workers’ Compensation Claim: You cannot be fired for seeking benefits after a workplace injury. This is a clear-cut public policy violation in Tennessee and the plaintiff only needs to prove the protected activity was a substantial factor in the termination.

  • Requesting FMLA Leave: The Family and Medical Leave Act (FMLA) protects your job when you need time off for serious health conditions or to care for a family member. Retaliation for requesting or taking FMLA leave is illegal.

  • Military Service Rights (USERRA) Duties: Federal law (and recognized TN public policy) protects employees from mistreatment or termination related to their military service obligations.

  • Wage and Hour Complaints: Complaining about unpaid overtime or minimum wage violations is a protected activity under the federal Fair Labor Standards Act or FLSA. An employer cannot legally fire you for making such a complaint.

Exception 3. Contract, Public Policy, and Wage Violations

Even if discrimination or explicit retaliation are not present, other factors can entirely negate the at-will defense, giving you grounds for legal action.

A. Express or Implied Contracts

While the at-will rule prevails in the absence of an agreement, it is entirely defeated by an express contract. If you have a written employment contract that specifies a term of employment (e.g., three years) or limits termination to "just cause," you are no longer an at-will employee. Furthermore, some highly detailed employee handbooks, though rare, can sometimes be interpreted by a court as forming an implied contract, limiting the employer’s right to fire arbitrarily.

B. Fundamental Public Policy Protections

Beyond specific state and federal retaliation statutes, the law recognizes certain duties and rights that are so fundamental they cannot be infringed upon by an employer. These protections form an unbreakable public policy shield.

For instance, an employer is prohibited from discharging or discriminating against an employee serving on jury duty (T.C.A. § 22-4-106), provided the employee gives proper notice. Furthermore, laws like USERRA protect those who serve in the military, guaranteeing an employer must re-employ a service member returning from duty. Crucially, a common law wrongful discharge claim protects an employee who is fired for refusing to commit a crime, such as refusing to commit perjury or otherwise break the law in a court proceeding. These rights affirm that citizens do not forfeit their civil duties and core morality simply by accepting employment.

C. Wage and Hour Violations (The Independent Claim)

Claims for unpaid wages, overtime, or unauthorized deductions stand entirely separate from wrongful termination. The at-will status is irrelevant when your employer has violated the Fair Labor Standards Act (FLSA) at the federal level or the Tennessee Wage Regulation Act (TWRA) at the state level. These laws mandate:

  • Payment of minimum wage.

  • Payment of time-and-a-half for non-exempt employees working over 40 hours per week (overtime).

  • Final paychecks must be issued no later than the next regular payday or within 21 days of separation, whichever is later (T.C.A. § 50-2-103).

If your employer failed to pay you, they committed a crime punishable by law, and you have a clear path to sue to recover up to three times the amount of unpaid wages as liquidated damages under the TWRA.

The Tennessee Wage Regulation Act (TWRA)

Tennessee law on wages presents a critical distinction that affects how you file a claim:

  • No Private Right of Action for the Act Itself: The TWRA does not provide a private right of action, meaning an employee cannot sue an employer directly for violating the TWRA alone. Instead, complaints for TWRA violations must be filed with the Tennessee Department of Labor and Workforce Development (DOL).

  • Lawsuit for Unpaid Wages: However, employees can initiate an unpaid wages lawsuit under Tennessee labor laws to recover the amount they are owed.

  • TN Damages (Triple Damages): If an employer knowingly violates wage laws in Tennessee, they may be liable for up to three times the amount of unpaid wages as liquidated damages.

  • Deadline: The statute of limitations for filing a claim for unpaid wages under state law is one year from the date the wages were due.

 

Summary of Critical TN Employment Law Deadlines

Whether you are seeking recovery for mistreatment while employed or for wrongful termination, every claim is subject to strict deadlines. For federal anti-discrimination claims (Title VII, ADA, ADEA), you generally must first file a Charge of Discrimination with the EEOC.

  • Federal Claims (EEOC): You have 300 days from the date of the adverse action to file a charge with the EEOC.

  • Wrongful Discharge (Tort) Claims: Claims filed under Tennessee state law for wrongful discharge (public policy violation) generally have a one-year statute of limitations.

  • THRA Claims: Must be filed with the THRC within 180 days (approx. 6 months).

  • Wage & Hour (FLSA): Statute of limitations is typically two years (or three years if the violation was willful).

Consult an employment attorney like Adam Rodrigues immediately if you suspect illegal conduct. Acting promptly is crucial to ensuring your claim is filed within the allowable statute of limitations. If your termination or mistreatment violated state or federal law, you may have a strong case for legal action.

Conclusion:“At-Will” is not always the end

The term "at-will employment" is a powerful tool for an employer, but it is not a final verdict. If you are reading this, you are likely feeling that your termination was deeply unfair, and you are right to question it. While unfairness alone may not be enough to win a lawsuit, the law is explicitly designed to protect you when that unfairness crosses the line into illegality. Your employer cannot legally fire you for being a member of a protected class (Discrimination), for reporting illegal conduct or exercising a legal right (Retaliation), or for upholding a core public policy, such as serving on a jury or refusing to commit a crime. Proving that the employer’s stated reason for firing you was a pretext for one of these illegal acts is the key to winning an employment law case, and we are here to help.

 

Don’t an employer’s illegal mistreatment cost you.

If your rights were violated, Adam Rodrigues Law is ready to investigate your case, expose the pretext, and fight the institution on your behalf.

Call Adam Rodrigues Law 615-270-2074 now or book your private consultation today.

 

FAQs

  • ennessee is an “at-will” employment state, which means employers generally have the right to terminate employees for any lawful reason, or no reason at all. The reason given for firing you does not have to be fair or reasonable, but it absolutely cannot be unlawful.

    An action is illegal if it violates specific federal or state anti-discrimination laws or public policy. You cannot be fired (or otherwise mistreated) because of:

    • Discrimination: Your protected status, such as race, color, religion, sex, age (if over 40), national origin, or disability.

    • Retaliation: Punishing you for asserting a legal right. For example, you cannot be fired for reporting illegal conduct by the employer, refusing to engage in illegal activities, submitting a worker’s compensation claim, or performing jury duty.

    • Contract Violation: Termination in violation of an express or implied employment contract

  • Generally, yes. Since your employment is presumed at-will, an employer is often within its rights to present new terms of employment, including lower pay, new duties, or restrictive covenants. Your refusal to sign can be used as a non-illegal reason for termination.

    However, if that new agreement was an attempt to illegally waive a protected right (like FMLA), or if the action was taken to target a protected class, it could become illegal.

  • The first essential step is to consult an experienced Tennessee employment attorney. Call Adam Rodrigues Law 615-270-2074

    You must file a notarized complaint form with the THRC within 180 days of the last act of discrimination. The THRC will investigate the claim and may offer mediation. Filing with the THRC also dual-files your charge with the federal EEOC. This process is complex, and many plaintiffs benefit from legal guidance to ensure their initial charge clearly outlines the legal basis for the claim.

  • Compensation for a wrongful termination or employment claim varies widely based on the strength of your evidence and the economic damages suffered. General categories of damages include:

    • Economic Damages: This includes back pay (lost wages and benefits from termination until the case is decided) and front pay (future lost earnings).

    • Liquidated/Double Damages (Wage Claims): If an employer is found to have knowingly violated Tennessee wage laws, they may be liable for up to two times the amount of unpaid wages. For willful FLSA violations, the employee may receive liquidated (double) damages.

    • Emotional Pain and Suffering Damages: Damages intended to compensate you for emotional distress (such as anxiety or depression) resulting from the employer's unlawful actions.

    • Punitive Damages: Available in cases involving intentional discrimination to punish the employer and deter future unlawful conduct.

    • Federal Damage Caps: Compensatory and punitive damages under federal law are subject to caps based on the size of the employer, ranging from $50,000 to $300,000 for employers with 15 or more employees. These limits do not apply to back pay, front pay, or interest on back pay.

    • Attorney's Fees and Costs: If you prevail in court, the employer may be required to pay your attorney's fees and court costs.

  • This is a critical legal difference. The Tennessee Public Protection Act (TPPA) requires the illegal activity to be the "sole reason" for termination, which is very difficult to prove. In contrast, for many claims under federal law or for Workers' Compensation retaliation claims in Tennessee, you only need to prove the illegal motivation was a "substantial factor" in the employer's decision, which is a much lower, more attainable threshold for the plaintiff.

  • Yes, but the firing is illegal retaliation if the complaint was based on your belief that the environment constituted illegal discrimination (e.g., harassment based on sex, race, or religion) under Title VII or the THRA. If the complaint was about general unfairness or an unpleasant boss, the firing is likely legal under the at-will rule.

  • It depends on the number of employees your employer has and whether they’re a private business, a local government, or a labor organization. Here’s the simplest way to understand it:

    • If your employer has 15 or more employees:
      Federal laws like Title VII (race, sex, religion, national origin, pregnancy) and the ADA (disability discrimination) generally apply.

    • If your employer has 20 or more employees:
      The ADEA (age discrimination for workers 40+) applies to private employers.
      (Important note: state and local governments are covered by the ADEA no matter how many employees they have.)

    • If your employer has 8–14 employees in Tennessee:
      The Tennessee Human Rights Act (THRA) still protects you from discrimination based on race, sex, age (40+), disability, religion, national origin, and other protected categories.

    • Labor unions and employment agencies:
      They are covered under these laws regardless of the size of the employer they represent, and may have their own size thresholds (e.g., many ADEA provisions apply to unions with 25+ members).

    • Deadlines matter just as much as employer size:

      • Federal EEOC deadline in Tennessee: up to 300 days

      • THRA state deadline: 180 days

    If your employer’s size puts you outside federal coverage, Tennessee law often fills the gap.

Last Updated: November 20, 2025;

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