BUSINESS WATCH

Nebraska Employment At-Will Rule Eroded

By Robert T. Cannella (continued)

 

 

In light of this new decision, employers wishing to preserve the at-will nature of their employment relationships would be wise to avoid making any written or oral representations regarding the duration of future employment. Statements such as, “We hope you’ll stay on for at least two more years” or “You are welcome to stay here until you decide to retire” can create legal problems if the employee receiving them reasonably and foreseeably relies on them to his or her detriment, such as by forgoing other opportunities.

Further, publications the employer distributes or shows to employees (such as employee handbooks, policy statements, employment application forms, memos and so forth) can be written or revised to clearly reflect that oral statements or representations regarding the length or continuation of employment may not be relied upon by any employee and will not be recognized by the employer unless made in writing and signed by the company president or human resources director. This latter precaution will not be foolproof, but it will allow the employer to argue in court that an employee’s reliance on an oral statement was unreasonable reliance. 

This new decision erodes but does not abolish Nebraska’s employment-at-will rule. The new rule will apply only in cases in which the employer gives the employee an assurance of employment and the employee foreseeably and reasonably relies on that assurance to his or her detriment. Nevertheless, we would expect lawyers for discharged employees to begin asking their clients whether they ever turned down other job offers or otherwise acted to their detriment in reliance on representations regarding future employment made by their former employers.

Blinn v. Beatrice Community Hospital and Health Center, Inc., 270 Neb. 809, ___ N.W.2nd___ (Jan. 6, 2006).

 

 

 

 

 

 

 

 

 

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