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What Are The Exceptions To At-Will Employment In Illinois?

June 3 , 2025

At-will employment is the default employment arrangement in Illinois and many other states in the United States. This means that an employer can terminate an employee at any time, for any reason, or for no reason at all, as long as the termination does not violate any laws. Similarly, employees can leave their jobs without warning or cause. However, there are significant exceptions that protect employees from unjust termination. We will now discuss the various exceptions to at-will employment under both federal and Illinois state law, highlighting the legal protections that exist for employees and what actions they can take if they feel they have been wrongfully discharged.

Exceptions Under Illinois Law

While Illinois is an at-will employment state, several important exceptions limit an employer’s ability to terminate employees without cause. These exceptions are often rooted in federal or state laws designed to protect employees’ rights.

1. Public Policy Exception

The public policy exception is one of the most common exceptions to at-will employment. This exception prevents employers from terminating an employee for reasons that violate public policy. For example, an employee cannot be fired for reporting illegal activity, such as discrimination, safety violations, or environmental hazards at the workplace. This exception also applies to employees who take time off for jury duty, serve in the military, or report workplace misconduct to regulatory agencies.

Under Illinois law, the public policy exception is rooted in the state’s common law. The Illinois Supreme Court has recognized that firing an employee for refusing to perform an illegal act, for engaging in protected activities, or for exercising a statutory right violates public policy and is grounds for a wrongful termination lawsuit.

2. Implied Contract Exception

In some situations, an implied contract between the employer and employee can override the at-will employment doctrine. While an explicit contract may not exist, certain circumstances create an implied understanding that the employee will not be terminated except for good cause. For example, statements made in an employee handbook or assurances given by a supervisor during the hiring process may create an implied contract of employment. If an employer violates this implied contract by firing the employee without just cause, the employee may have grounds to sue for wrongful termination.

Illinois courts have found that specific language in an employee handbook or oral representations made by an employer can form the basis for an implied contract, even if no written contract exists. In some cases, the courts have ruled that employees are entitled to a hearing or an explanation before being terminated.

3. Statutory Exceptions

Both federal and state laws provide statutory exceptions to at-will employment. These laws prohibit employers from firing employees for engaging in certain protected activities, such as:

  • Discrimination – Under federal laws, such as Title VII of the Civil Rights Act of 1964 and the Illinois Human Rights Act, employers cannot fire employees based on race, color, national origin, sex, disability, or religion.
  • Retaliation – Both Illinois and federal law protect employees from retaliation. For example, under Title VII, employees are protected from retaliation if they file a discrimination claim, participate in an investigation, or oppose discriminatory practices.
  • Family and Medical Leave – The Family and Medical Leave Act (FMLA) provides protections for employees who take leave for family or medical reasons. Under FMLA, an employer cannot terminate an employee for taking qualifying leave.
  • Whistleblower Protections – Federal and state laws also provide protections for employees who report certain types of illegal conduct. For example, under the Illinois Whistleblower Act, an employer cannot fire an employee for reporting violations of the law, such as unsafe working conditions or fraudulent activities.

4. Wage and Hour Violations

Employees who file complaints related to wage and hour violations, such as unpaid overtime or minimum wage claims, are also protected from termination under both federal and state law. Under the Fair Labor Standards Act (FLSA), employers are prohibited from retaliating against employees for asserting their rights under wage and hour laws. Similarly, Illinois law provides additional protections for workers who file complaints regarding pay violations.

Exceptions Under Federal Law

While Illinois law provides several exceptions to at-will employment, federal law also offers protections for workers across the United States. Some of the most notable federal exceptions include:

1. Title VII of the Civil Rights Act of 1964

This federal law prohibits discrimination on the basis of race, color, national origin, sex, and religion. Employees who are terminated based on these protected characteristics may file a lawsuit against their employer for unlawful termination.

2. Americans with Disabilities Act (ADA)

The ADA protects employees with disabilities from discrimination in the workplace. Under the ADA, employers are prohibited from firing employees due to their disability unless the employer can prove that the employee cannot perform the essential functions of the job, even with reasonable accommodations.

3. Age Discrimination in Employment Act (ADEA)

The ADEA protects employees who are 40 years of age or older from discrimination based on their age. If an employer terminates an employee because of their age, the employee may have a valid claim under this federal law.

4. Occupational Safety and Health Act (OSHA)

OSHA provides protections for employees who report workplace hazards or unsafe working conditions. Employees who are fired for reporting safety violations may have a retaliation claim under federal law.

What To Do If You Believe You Were Wrongfully Terminated

If you believe you have been wrongfully terminated in violation of any of these exceptions, it is important to act quickly. Here are the steps you can take:

  1. Consult with an Employment Attorney – An experienced employment attorney can evaluate your situation and determine whether your termination violates any laws or exceptions to at-will employment.
  2. File a Complaint – If you believe you were discriminated against or retaliated against, you can file a complaint with the Equal Employment Opportunity Commission (EEOC) or the Illinois Department of Human Rights (IDHR).
  3. Gather Evidence – Collect any relevant documents, emails, or witness statements that support your claim of wrongful termination.
  4. File a Lawsuit – If necessary, your attorney may assist you in filing a lawsuit against your employer for wrongful termination.

Illinois Employment Frequently Asked Questions 

What Is At-Will Employment In Illinois?

At-will employment means that an employer can terminate an employee for any reason or no reason at all, without prior notice or cause. Similarly, employees are free to leave their job without notice. However, there are exceptions to this rule that protect employees from unfair or illegal termination.

Can An Employer Fire Me For No Reason In Illinois?

In general, an employer in Illinois can fire an employee without providing a reason. However, there are exceptions to this rule. For example, an employer cannot fire an employee for reasons that violate public policy, such as retaliation for whistleblowing or discrimination based on race, sex, or disability.

What Laws Protect Employees From Wrongful Termination In Illinois?

Several federal and state laws protect employees from wrongful termination in Illinois. These include the Illinois Human Rights Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Family and Medical Leave Act. These laws prohibit discrimination, retaliation, and other unlawful employment practices.

What Should I Do If I Think I’ve Been Wrongfully Terminated?

If you believe you have been wrongfully terminated, the first step is to consult with an experienced employment attorney. Your attorney can help you understand your rights, evaluate your claim, and determine the best course of action.

How Long Do I Have To File A Wrongful Termination Claim In Illinois?

The time limit for filing a wrongful termination claim depends on the specific law under which you are filing your claim. For example, under the Illinois Human Rights Act, you must file a charge within 180 days of the alleged discriminatory act. For federal claims, the time limit may be different, so it’s crucial to act quickly.

Call The Law Office Of Michael T. Smith & Associates To Receive A Free Consultation 

If you believe that you have been wrongfully terminated under Illinois or federal law, we are here to help. The Law Office of Michael T. Smith & Associates offers experienced legal representation in retaliatory discharge cases and other wrongful termination claims. Contact us today for a free consultation. To receive your free consultation, contact our Chicago wrongful termination lawyer at the Law Office of Michael T. Smith & Associates when you call (847) 450-1103. We serve clients throughout Chicago from our office in Lisle, Illinois.

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