It’s Time to End At-Will Employment in America

The National Job Security and Fair Employment Act of 2025

For nearly a century, American workers have lived under a system that allows employers to fire people for almost any reason, or no reason at all. It’s called at-will employment, and it’s time to abolish it.

At-will employment became the law of the land nearly 95 years ago.
It grew from an old 19th-century idea of “freedom of contract,” when most jobs were short-term and informal.  In 1877, the case of Payne v. Western & Atlantic Railroad established that employers could terminate workers without cause. By the 1930s, courts across the country accepted it as standard practice.

But the world has changed. We live in a modern economy — powered by global companies, automation, and remote work — and this outdated system no longer works for today’s workforce or communities. Workers deserve security, respect, and fairness. No one should lose their livelihood without cause, notice, or accountability.

It’s been 95 years. Enough is enough.

What This Act Would Do:
The National Job Security and Fair Employment Act of 2025 would replace at-will employment with a just cause standard nationwide. It guarantees that no employee — public or private — can be fired or laid off without a legitimate, documented reason.

It protects workers, strengthens families, and holds corporations accountable.

 
1. Just Cause Employment Standard
Employers must show a fair, well-documented reason before firing or laying off anyone. Valid reasons include verified misconduct, consistent poor performance, or true financial necessity.
“Just cause” replaces “at-will” as the new national standard.

 
2. Oversight and Enforcement
The U.S. Department of Labor (DOL) will oversee private-sector compliance, and the Federal Labor Relations Authority (FLRA) will handle public and federal employees.
These agencies will have full authority to review or reverse unjust terminations, order reinstatement, and issue strong financial penalties.

 
3. Remote Work Protections
If you were hired as a remote worker during the COVID-19 pandemic, your employer must honor that. Companies cannot force you to relocate or return in person unless your original agreement stated otherwise.

 
4. Fair Layoffs and Severance Pay
Layoffs should only happen when absolutely necessary. Employers must provide clear written justification and financial proof before eliminating jobs.

Employees must receive at least 90 days’ written notice before a layoff.
If a company closes or goes bankrupt, all affected employees must receive six months of severance pay and continued health coverage.
Severance obligations must come before executive bonuses, stock buybacks, or shareholder payouts.
Employers must also show that they tried to avoid layoffs through cost-cutting or reassignment first.
 
5. Accountability for Big Corporate Layoffs – Layoff Mitigation and Accountability Report (LMAR)
Large corporations and publicly traded companies will be held accountable for the planning and decisions that lead to large-scale layoffs.

When a company lays off more than 5 percent of its total workforce or more than 500 employees, it must file a Layoff Mitigation and Accountability Report (LMAR) with the U.S. Department of Labor (DOL) within 30 days of the announcement.

The LMAR must be publicly available and include:

The business justification for the layoffs, including financial or operational evidence demonstrating necessity.
Efforts to reduce harm to employees and local communities, such as severance, retraining, or job placement programs.
Steps taken to prevent recurrence, including improved workforce forecasting and internal accountability measures.
The DOL will review these reports and may audit or investigate them.
If the DOL finds negligence or avoidable layoffs, it may:

Impose civil fines or sanctions,
Require a Corrective Action Plan, or
Declare the company ineligible for federal contracts, grants, or subsidies for a defined period.
- Protects workers and communities.
- Ensures transparency and corporate accountability.
- Uses existing DOL authority for practical implementation.

 
6. Government Shutdown Pay Continuity
All federal employees, including furloughed workers, will continue receiving full pay and benefits during any government shutdown.
Public servants should never suffer financial harm because of political gridlock.

 
7. Maternity and Family Leave Protection
No employee can be laid off or terminated while on maternity, paternity, or any federally protected family leave — even if their department or division is downsized. Employers must hold the employee’s position, pay grade, and benefits until they return.
Violating this protection will result in automatic reinstatement and civil fines starting at $200,000 per incident, plus additional damages payable to the affected employee.

 
8. Stronger Penalties for Violations
Corporate violations must carry meaningful consequences:

Civil fines for private corporations range from $250,000 to $1,000,000 per incident, depending on company size and severity.
Small and mid-sized businesses face $25,000 to $250,000 per incident.
Repeat offenders may face escalating fines, public disclosure, and permanent ineligibility for federal contracts.
Wrongfully terminated employees will be entitled to reinstatement, back pay, damages, and legal cost reimbursement.
Employers will no longer be able to treat fines as the cost of doing business.

 
9. Non-Retaliation
Employers are strictly prohibited from retaliating against any worker who reports violations, refuses to relocate, or asserts their rights under this Act.

 
10. Implementation Timeline
The Act will take effect six months after passage, giving employers and agencies time to adjust while ensuring timely protection for workers.

 
Why We Need This Now
At-will employment is nearly a century old and completely outdated.
Workers deserve security, transparency, and protection from arbitrary firings.
Remote employees are being unfairly pressured to relocate.
Federal workers lose pay during shutdowns.
Big corporations continue mass layoffs while giving executives bonuses.
Parents on maternity or family leave face job loss when they should be protected.

This legislation stabilizes families, protects communities, and modernizes workplace protections for a fairer economy.

 

Who Can Make This Happen
We are calling on Congress — especially leaders who have long stood with working people — to act:

Rep. Bobby Scott (D–VA) – Ranking Member, House Committee on Education and the Workforce
Sen. Bernie Sanders (I–VT) – Chair, Senate HELP Committee
Sen. Sherrod Brown (D–OH) – Advocate for workers and families
Rep. Pramila Jayapal (D–WA) – Co-chair, Congressional Progressive Caucus

We urge these leaders and every member of Congress to sponsor and pass the National Job Security and Fair Employment Act of 2025 to finally end at-will employment in the United States.

Our Demand
We demand nationwide job security and the abolition of at-will employment.
We call on Congress to establish just cause as the national standard for termination.

No one should lose their job without a fair reason.
No parent should lose their job while caring for a newborn.
No worker should live in fear of arbitrary layoffs.

It’s time to make job security a right — not a privilege.