Posted On: June 22, 2008 by Mark A. Eskenazi

Job Security: Not in New York—You're Fired!

New York State Court of Appeals: Smalley v. Dreyfus Corporation


New York State’s highest court affirmed that New York is an at-will employment state: absent a specific contract (other than to be hired) or a union agreement, employees can be fired for any reason (but not the wrong reason—see New York Employment Discrimination). The court says employment is a type of contract, and if you get fired you cannot sue the boss for fraud or for inducing you to work for the employer before firing you. The court left open the possibility that with the right facts, there might be a claim of fraudulent inducement if it can be shown that you were damaged and that it was the employer’s plan to fire you all along. But being fired or losing your job from a merger or cutbacks is acceptable in New York, at least according to the Court of Appeals. The bottom line: be careful who you choose to work for.