Employment relationships in the United States generally fall into one of two categories: at-will employment or employment with for-cause termination protections. The differences between the two have significant implications for both workers and employers. Understanding when to use which arrangement is key to furthering and protecting your business.
At-Will Employment
In an at-will arrangement, either the employer or the employee may end the employment relationship at any time, for any lawful reason (or no reason at all), with or without notice.
Advantages
- Greater flexibility for employers to adjust staffing quickly in response to business needs or economic conditions.
- Employees can leave without penalty if a better opportunity arises.
- Reduced administrative and legal costs when terminating underperforming or redundant positions.
- Encourages a dynamic labor market, particularly valuable in fast-moving industries.
Disadvantages
- Lower sense of job security for workers, which can increase stress and reduce long-term commitment.
- Potential for perceived (or real) unfair dismissals, even if the termination is technically legal.
- Higher turnover rates, which raise recruiting and training expenses for employers.
For-Cause (or “Just Cause”) Employment
Under a typical for-cause contract or policy, an employer may only terminate an employee for specific, documented reasons (ex. misconduct, poor performance, or legitimate business necessity) and usually only after warnings or progressive discipline. These types of arrangements may also include an option for termination after a certain notice period.
Advantages
- Significantly stronger job security for employees, fostering loyalty and willingness to invest in long-term skill development.
- Encourages better management practices, clearer performance expectations, and documented feedback.
- Reduces arbitrary or discriminatory firings.
- Often results in lower voluntary and involuntary turnover.
- Notice requirements allow employers to prepare for and replace someone leaving and give employees time to find a new job before employment ends.
Disadvantages
- More difficult to remove underperforming or incompatible employees.
- Potential for prolonged disciplinary processes, arbitration, or litigation.
- May slow hiring decisions, as employers become more cautious about making permanent commitments.
- In some cases, long-tenured employees who are adequately (but not exceptionally) performing can be harder to reassign or exit.
South Carolina’s Legal Landscape
South Carolina is a strong at-will state—one of the most employer-friendly in the nation on this issue. Outside of a negotiated contract, the state recognizes only three narrow public-policy exceptions to at-will termination:
1. Firing an employee for refusing to violate a criminal law,
2. Exercising a statutory right (e.g., filing a workers’ compensation claim), or
3. Violating a clear mandate of public policy as articulated by South Carolina courts (a very high bar).
Be aware that employee handbooks can accidentally create a for-cause contract if they contain mandatory progressive-discipline language or other binding language. South Carolina courts have upheld altered at-will status in such cases, but only when the language is clear and conspicuous. Employers should add disclaimers to their handbooks to avoid this outcome (see statutory requirements in S.C. Code Sec. 41-1-110).
Which Model Is “Better”?
Typical lawyer answer: It depends. There is no universal winner. Low-skill jobs, seasonal businesses, and industries with rapid technological change often prefer at-will flexibility. Hospitals, universities, and manufacturers with heavy investments in employee training may lean toward stronger retention tools, including offering individual for-cause contracts to key talent. Startups tend to be riskier and often have to provide assurances to attract key professionals, but startups may need at-will flexibility as they determine which roles are needed.
This is where having a trusted legal advisor is critical. Understanding the ground rules—especially South Carolina’s particularly strong presumption of at-will employment—helps both sides make informed decisions and draft agreements that match their real-world needs.
* This post is for general informational purposes and does not constitute legal advice. Consult a qualified employment law attorney for guidance tailored to your business.
