Oregon Construction Contractors (CCB) Practice Test

Which of the following describes a key characteristic of at-will employment?

1. Employees must have a contract

2. Employers can terminate employees without cause

3. Employment lasts for a specified term

4. Both parties must agree to end employment

The correct answer is: Employers can terminate employees without cause

At-will employment is a fundamental concept in employment law where either the employer or the employee can terminate the employment relationship at any time, for any lawful reason, or for no reason at all, without advance notice. This characteristic allows employers the flexibility to make employment decisions based on performance, business needs, or other factors without needing to provide justification or go through a formal process. The nature of at-will employment means that contracts are not mandatory for employees, as seen in the incorrect options. While some positions may have contracts that outline specific terms, this does not define at-will employment itself. Additionally, employment lasting for a specified term contradicts the at-will principle, as it implies a set duration that can limit the flexibility inherent in at-will scenarios. Lastly, while mutual agreement to end employment can happen, it is not required in at-will arrangements, as either party can initiate the end of employment independently. Thus, the key characteristic that best aligns with at-will employment is that employers can terminate employees without cause.