The Arizona Employment Protection Law and the At-Will Employment Relationship

Arizona employers and employees have an “at will” relationship, which means that employers are free to terminate employees without notice or reason, and employees are free to resign at any time without notice or reason. . Of course, the at-will employment relationship is subject to the obligation of both parties to comply with other legal requirements, including contractual duties and compliance with various federal and state laws against harassment and discrimination.

To reduce the number of wrongful terminations and related litigation, the Arizona legislature enacted the Arizona Employment Protection Act in 1996. The Act established certain guidelines designed to clarify what did and did not constitute wrongful termination under Arizona law. Prior to the enactment of the Arizona Employment Protection Law, employers faced numerous laws based on alleged oral promises and implied obligations, with differing results depending on the judge or jury. Several of those outcomes served to expand an employee’s right to sue in a way the legislature found unacceptable.

The Arizona Employment Protection Act contains at least four important provisions that all Arizona employers and employees should be aware of:

First, there is a one-year statute of limitations for claims for breach of an employment contract or for unjustified dismissal. This means that such claims must be filed within one year from the date of termination, significantly shortening the six-year contract limitation period that previously applied to some claims. Significantly, however, this limitation period does not apply to claims under the Arizona Civil Rights Act or under federal law arising from unlawful discrimination due to, among other things, race, sex, disability or age.

Second, there is an established presumption that employment relationships can be terminated at will, and that presumption will prevail unless there is an express written agreement to the contrary. This will typically require a written contract signed by both parties, or an unambiguous warranty outlined in an employee handbook or handbook.

Third, the Arizona Employee Protection Act limits employee wrongful termination claims to express breach of contract claims (described above), claims specifically permitted by Arizona statute, and incorrect “public policy” claims. It is important to note that even these claims are limited to cases where the law in question does not itself provide relief. Wrong claims involve circumstances in which an employee is fired for refusing to break the law, or reports an employer that he believes he is breaking the law.

Finally, the Act expands sexual harassment complaints so that certain sexual harassment complaints can be filed even when federal sexual harassment laws do not apply.

At the end of the day, the Arizona Employment Protection Act creates a legal environment in which it can be very difficult to successfully bring a claim against an Arizona employer. Of course, every situation is different and the law is constantly changing, and if you believe your rights have been violated or you have been accused of misconduct, you should speak with an experienced Arizona employment attorney to determine what your rights and obligations are.