A more thorough explanation:

Definition: Employment-at-will is an agreement between an employer and employee that states that the employment is for an indefinite period and can be terminated by either party at any time. This agreement is usually included in the employment contract.

Exceptions: Even if the employment agreement is at-will, there are certain reasons why termination could still be wrongful. These exceptions vary by state.

• Public Policy Exception: Employers cannot terminate employees in violation of well-established public policy of the state. For example, an employee cannot be terminated for filing a workers' compensation claim after an on-the-job injury.
• Implied Contract Exception: An employee may have an expectation of a fixed term or indefinite employment based on something the supervisor has done. This can take the form of employer's statements, an employer’s practice of only firing employees for cause, or an assertion in the employee handbook that specific termination procedures will be followed.
• Implied Covenant of Good Faith and Fair Dealing: Some states recognize an implied covenant of good faith and fair dealing in employment relationships. Under this exception, an employer typically may not terminate an employee in bad faith or terminate an employee when the termination is motivated by malice.

Example: An employee in California is terminated after refusing to participate in illegal activities at the request of their employer. This termination would be wrongful under the public policy exception, as the employee cannot be terminated for refusing to violate the law at the employer's request.

Explanation: This example illustrates the public policy exception to the employment-at-will doctrine. Even though the employment agreement may be at-will, the employer cannot terminate the employee for refusing to participate in illegal activities. This is because it violates the well-established public policy of the state.