Letter to governor, lawmakers on Arizona’s at-will employment laws

Dear Governor Hobbs and members of the Arizona State Legislature,

I am writing to you today not only as a concerned Arizonan, but as someone who has witnessed firsthand, time and again, the profound and damaging effects of our state’s at-will employment laws. I have seen the damage and destruction in the erosion of trust between employees and employers, a relationship that is absolutely vital for a healthy workforce to thrive. The system, as it stands, is broken.

My own experience with abrupt termination, without cause, notice, or an opportunity to address any alleged performance issues, is a painful example of this failure. But it is not unique. This kind of sudden, unexplained discharge does more than just cause personal and financial hardship; it breeds deep mistrust and anger, creating a system where a person's livelihood can be tied to a manager's personal whims or workplace politics rather than their professional merit. I, for one, have personally experienced the long-lasting damage of job insecurity, being a good employee only to be discharged seemingly for no reason other than not being favored by a colleague or boss. Hard work and dedication can be rendered meaningless at a moment's notice.

This pervasive fear creates a culture of silence. Employees, even when they witness wrongdoing, inefficiency, or other problems, cannot speak up because a manager, on a whim, can fire that employee and remove their livelihood. This is not a sustainable or ethical way to run a workforce. It is a failure that needs to be addressed and corrected, as it allows problems to fester and go uncorrected, ultimately harming both the company and the state's economy.

The reality of this lopsided system becomes even more apparent when an employee attempts to seek justice. I have personally sued two employers for violations of my rights, and in both instances, I lost. The reason is not a lack of merit in my case, but a legal system that is overwhelmingly stacked against the employee. Statutes, regulations, judges, and lawyers are all part of a framework that protects employers, even when they are clearly in the wrong. The system offers an illusion of “employment rights” which it absolutely does not uphold, and it is egregious in its failure to protect Arizona’s workforce. This egregious imbalance leaves employees in a state of financial servitude, powerless to fight for what is fair and right, because the system is designed to protect those with power and resources.

Let’s be clear about what we are discussing. Many people mistakenly believe that Arizona’s “at-will” employment is tied to its “right-to-work” status, but these are two very different legal concepts, and it is vital that we do not confuse them. Right-to-work laws are often deceptively named; they protect an employee’s right to choose whether or not to join a union, but they provide no protection whatsoever for an employee's job. At-will employment, on the other hand, is the doctrine that grants employers the power to terminate an employee for any reason or no reason at all. It is this doctrine that prevents employees from being protected from arbitrary, no-cause firings, and it has no merit or justice. It creates a system that favors unchecked power over fairness and fosters the very environment of distrust and fear that is holding our state back.

For a variety of reasons, Arizona is often perceived as being behind other states, and I am highly confident that this is a direct result of this destruction of trust and confidence in how employees are treated. The lack of job security and the constant fear of arbitrary termination create an environment where a motivated, thriving workforce cannot fully develop. This systemic failure has tangible consequences that impact our state’s ability to compete and innovate.

A better model already exists. Montana is the only state in the country that has moved away from the at-will model. Under the Montana Wrongful Discharge from Employment Act (WDFEA), an employer must have “just cause” to fire an employee who has completed their probationary period. This isn’t a burden on employers; it’s a proven model for stability. A study published by the National Bureau of Economic Research found that the passage of the WDFEA reversed a period of market uncertainty, restoring Montana’s annual employment growth rate by a statistically significant 0.46 percentage points. This law provided clarity and predictability, which in turn encouraged employers to hire and reduced costly litigation.

Furthermore, my personal feeling of anxiety and job insecurity is not an anomaly. The Economic Policy Institute has published research showing that workers in at-will employment states are more likely to experience job insecurity and anxiety. This emotional toll translates directly into lower morale and reduced productivity, which in turn hurts Arizona’s businesses. The high turnover and “unemployment epidemic” are often self-inflicted wounds for employers, who are a root cause of the problem. A recent report from the Center for American Progress estimates that the cost to replace an employee can be as high as one-fifth of that worker's annual salary, with some estimates reaching up to twice that amount for more specialized roles. These high turnover costs drain our state's businesses of resources that could be used for growth and innovation.

On an international scale, the U.S. at-will model is an anomaly. Most developed countries, including much of Europe and Canada, have systems that require employers to provide a “just cause” for termination. In countries like Germany, employers must have a socially justified reason for dismissal, and in France, a dismissal must be based on a “real and serious cause.” These nations also mandate a minimum notice period and often require severance pay based on an employee's tenure. For example, in France, severance pay is at least 25% of monthly wages for each year of employment. In Canada, employees with over a year of continuous service are typically entitled to severance. This widespread international model provides a stable foundation for the workforce, leading to higher job security and greater employee trust, which directly contributes to long-term economic stability.

This letter also needs to address the absurdity of Arizona’s Unemployment Insurance (UI) laws, which are an additional broken system that harms those they are meant to help. The current maximum benefit of $320 per week is grossly insufficient and fails to correspond with what a person was earning before being fired. This amount makes it impossible to sustain a household while looking for a job that aligns with one's professional experience. This system must be reformed to mirror a person’s prior earnings so they can maintain stability and not be forced into jobs they are overqualified for out of desperation. Additionally, the “Waiting Week” provision, which denies benefits for the first week of unemployment, is an absurd and cruel measure designed to save the state money while inflicting maximum damage on people at their most vulnerable time. I make a powerful and urgent call for this provision to be removed immediately, as that first week is often the most critical for an individual facing financial hardship.

I am not asking for a radical change that harms business. I am making a powerful and urgent call for swift and meaningful change for the very stability and trustworthiness of our workforce. The current lopsided model between employer and employee means that employees suffer particular and long-lasting damages, such as being blacklisted from future opportunities or having to pad their resumes to cover resume gaps and frequent job changes. I urge you to take immediate action: convene a task force to study the Montana model and its potential application in Arizona, and begin a public dialogue on this critical issue. It is imperative that you pass legislation that would even the employment relationship between employers and employees, creating a system that is fair and just for all parties. The stability of our economy and the well-being of our citizens depend on it.

Sincerely, Thomas M. Chavez
Phoenix