The Time Has Come for Just-Cause Employment

The Time Has Come for Just-Cause Employment

Just-cause ensures workers can speak up about safety concerns and exercise their right to organize, while fostering greater economic security for families.

The Time Has Come for Just-Cause Employment

Last summer, Kristina Baumier was working at Oregon’s Renaissance Faire when a sign fell on her head. She ended up in urgent care with a concussion. For her troubles, the company immediately fired Kristina.

Stories of workers fired after getting injured, raising safety concerns, or forming a union are all too common. They are the result of our “at-will” employment policy, where an employee can be fired for any reason or no reason at all. At-will employment undermines labor protections, while making workers more financially insecure. It’s time to replace this with just-cause employment – requiring employers to provide a valid reason for termination.

As in nearly every state, at-will employment is Oregon’s default rule. It gives employers wide latitude to fire workers for reasons that are unfair, arbitrary, or never explained. A 2020 national survey found that 47 percent of workers had been fired for “no reason or a bad reason.”

At-will employment weakens workers’ right to organize. Although federal law makes it illegal to fire workers for organizing, at-will employment allows employers to circumvent that protection. If an employer suspects a worker supports a union, they can fire that worker immediately, leaving the worker to prove the firing was retaliation.

Workers are also less protected against discrimination under at-will employment. Employers can’t legally fire workers on the basis of race, sex or religion. But under at-will employment, an employer isn’t required to give a reason for the firing. When a worker challenges a firing as discriminatory, an employer can offer another explanation, making discrimination hard to challenge in court.

The at-will standard also forces workers to accept unsafe or degrading conditions. Nationally, one in three workers reported working under hazardous or unhealthy conditions to avoid termination. Nearly half said they endured hostile or verbally abusive treatment from managers because they feared losing their jobs.

The ability of employers to fire workers for any or no reason can suddenly undermine family finances. Without a paycheck, families deplete their savings or go into debt to try to stay afloat. Some workers fired on a whim simply end up hungry and unhoused.
But this doesn’t have to continue. Oregon can choose to implement just-cause employment.

Although most Oregon workers are at-will employees, about one-quarter of workers enjoy just-cause protections. Unionized workers usually have just-cause provisions in their union contracts. Public sector employees also tend to work under just-cause employment, as do CEOs. Outside the U.S., just-cause employment is the norm in most rich democracies. And within the U.S., just-cause is the standard in Montana, Puerto Rico, and the U.S. Virgin Islands.

Recently, some cities have introduced just-cause protections in certain industries. After New York City did it for the fast food industry, fast-food employment grew, and the number of establishments increased.

Lawmakers have it within their power to establish a just-cause standard for Oregon workers. While details would need to be established, a strong just-cause standard requires employers to provide a valid reason for firing a worker, gives workers a fair chance to improve, and provides a written explanation for termination. Employers could still fire workers for serious misconduct or make layoffs when economic conditions require them.

This is the kind of protection that Oregon workers deserve – not the outdated at-will system that allows workers like Kristina to be fired for arbitrary or vindictive reasons. Just-cause ensures workers can speak up about safety concerns and exercise their right to organize, while fostering greater economic security for families. A just-cause standard is a reform whose time has come.

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Kathy Lara

Kathy Lara is a Policy Analyst with the Oregon Center for Public Policy

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