Labor & Employment Law

US Circuit Court of Appeals rules that New York State law provides for ?employment-at-will? absent a constitutionally impermissible action by the empl

New York State follows the common law doctrine of at-will employment. Except with respect to a judicial exception, ?under New York law as it now stands, absent a constitutionally impermissible purpose, a statutory proscription, or an express limitation in the individual contract of employment, an employer?s right at any time to terminate an employment at will remains unimpaired.? This proved to be a critical element in deciding the Bartel case.

When Marsha Bartel complained that the television show for which she was responsible was not adhering to NBC?s internal ethical standards and refused to continue acting as the show?s producer, NBC Universal, Inc. terminated her employment.

NBC told Bartel that her termination ?was part of a program of lay-offs that it was making because of general economic conditions.? Bartel, however, did not accept this explanation and sued NBC alleging ?breach of contract.? She alleged that the reason given for her termination was pretextual; that the real reason was her refusal to produce a segment that violated ethical and company standards; and that her contract included an implicit restriction against firing her for this kind of reason, thus rendering NBC?s action a breach of contract.

Bartel appealed a federal district court dismissal of her petition ?for failure to state a claim upon which relief can be granted.? Ultimately the Seventh Circuit Court of Appeals held that ?under New York law as it now stands, absent a constitutionally impermissible purpose, a statutory proscription, or an express limitation in the individual contract of employment, an employer?s right at any time to terminate an employment at will remains unimpaired.?

Finding that Bartel ?does not contend that the termination of her employment contract violated the Constitution, a statutory proscription, or an express limitation in the contract (Bartel?s timing argument were earlier rejected), the Circuit Court rejected her argument that the exception to this general rule formulated by New York?s Court of Appeals of New York in Wieder v Skala, 80 NY2d 268, -- i.e., a law firm in conducting the practice [of law] will do so in accordance with the ethical standards of the profession?-- should apply a journalist working for a news organization such as NBC. The Circuit Court said that in Wieder, the Court of Appeals ?was careful to distinguish the situation of a lawyer from that of others who might also have ethical duties, but for whom it refused to recognize an implicit restriction on termination.

The Circuit Court decided that there was no breach of contract on NBC?s part, ?even assuming that Bartel can prove that the reason NBC offered for the lay-off was pretextual? and that her employment by NBC was controlled by the doctrine of ?employment-at-will.

Insofar as public employment in New York State is concerned, the doctrine of ?employment-at-will? has been tempered by statutes such as Section 75 of the Civil Service Law and Section 3020-a of the Education Law and by ?contract disciplinary procedures? set out in collective bargaining agreements and certain types of contracts of employment.

Full post as published by New York Public Personnel Law on September 30, 2008 (boomark / email).