Even in at-will states — where the employer can terminate without cause — more and more employees are finding loopholes in at-will agreements. One recent court case shows how to close one of the big loopholes, involving medical leave.

The common ploy involves the employee arguing that there’s an oral or written agreement changing the terms of at-will employment. That’s what happened in the case of Chauvin v. RadioShack Corp. — a case the company won.

The terminated employee charged that RadioShack wrongfully terminated her employment following an absence from work for medical issues. More specifically, she said RadioShack breached an agreement to provide her with a leave of absence and guaranteed return to work when that leave ended.

RadioShack submitted three different documents the plaintiff had signed in connection with her employment – all of which detailed and confirmed her at-will status:

• In one, the ex-employee agreed with the terms of her “Preliminary Online Application” that, if hired, she’d be employed at-will. The document also provided that if she was hired, her at-will employment could only be modified by a separate written document signed by the employee and an appropriate company manager.
• Second, in her formal “Application for At-Will Employment,” the plaintiff again agreed to these same terms.
• Third, in acknowledging receipt of her employee handbook, she signed a form confirming her at-will employment status with the company.

On top of that, there was evidence of a personnel record noting she had taken a leave of absence, and which stated that “The below named person is an AT-WILL employee and no information on this form shall change the employment status.”

After reviewing the documents, a judge threw the case out of court, essentially a victory for RadioShack.

Tags: at will, medical leave, RadioShack