Walmart is the largest private employer in the United States, with over 1.5 million employees nationwide. With such a large workforce, Walmart has to balance protecting employees from unfair termination with maintaining flexibility to manage its business efficiently. This leads to the question: can Walmart fire employees without cause?
The short answer is yes, Walmart can terminate employees without having to establish “just cause” in most cases. Like most private sector employers, Walmart employees are considered “at-will” under the law in all U.S. states except Montana. At-will employment allows the employer or employee to end the employment relationship at any time for any reason, with some exceptions.
While Walmart can fire without cause, there are still some legal limitations and best practices for terminations that Walmart and other employers should follow. Understanding the at-will doctrine, discrimination laws, protected concerted activity, and Walmart’s own termination policies can help employees know their rights.
The At-Will Employment Doctrine
Most Walmart employees work under at-will employment contracts. At-will means that the employment relationship can be terminated by either the employer or employee at any time for any reason. Under this common law doctrine, the employer does not need “just cause” to fire the employee.
At-will employment is the default employment arrangement in all U.S. states except Montana. Montana law requires employers to have a “legitimate business reason” for any termination.
Some of the key characteristics of at-will employment relevant to Walmart terminations include:
- No guaranteed employment term – The employer or employee can end the work relationship at any time.
- No requirement for notice before termination – However, some state laws may require payment in lieu of notice.
- No requirement of cause for termination – The employer can fire for any reason not prohibited by law.
- Employment can be terminated with or without notice.
Walmart uses at-will employment contracts for most store associates, distribution center workers, and corporate employees. The only exceptions are employees covered by collective bargaining agreements negotiated by some unions at a small number of Walmart locations.
Wrongful Termination Exceptions
While Walmart can fire at-will employees without having to establish cause, there are some legal exceptions where terminations can still be wrongful or unlawful:
Public Policy Exception
Most states recognize a public policy exception to at-will employment. This means an employer generally cannot fire an employee for refusing to violate the law or for exercising a legal right or privilege.
For example, Walmart could not legally terminate an employee for:
- Refusing to commit perjury at the employer’s request
- Filing a workers compensation claim
- Reporting unlawful activity to government agencies
- Serving on a jury
Implied Contract Exception
State courts have also found an implied contract exception in some cases where the employer’s own policies, handbooks, or conduct imply an employment contract exists. This can override the at-will presumption.
For example, language in an employee handbook about termination procedures, job security, or disciplinary steps is sometimes enough to prove an implied “for cause” contract.
Discrimination Laws
Federal and state discrimination laws prohibit employers from firing employees for discriminatory reasons based on protected characteristics like:
- Race
- Color
- Religion
- Sex
- National origin
- Disability
- Age (over 40)
It is illegal for Walmart to fire someone because of their membership in these protected classes. Employees who believe they were terminated for discriminatory reasons can file complaints with the Equal Employment Opportunity Commission (EEOC) or their state agencies.
Retaliation
It is also unlawful for Walmart to terminate employees in retaliation for exercising rights protected by law. For example, employees are protected from retaliation for:
- Filing discrimination complaints
- Requesting reasonable accommodations for a disability
- Requesting family or medical leave
- Complaining about unpaid wages
- Reporting corporate fraud or illegal conduct
Walmart and other employers cannot lawfully fire employees out of retaliation for these kinds of protected activities.
Walmart Policies on Terminations
While Walmart retains discretion to terminate employees in most cases, the company does have internal policies that govern discipline and discharge in stores.
Walmart’s basic policy is called “Coaching for Improvement”. Its stated purpose is to provide associates with guidance, training, and tools to succeed. Formal discipline is to be applied progressively, with termination reserved only for the most serious offenses or exhaustion of the process.
The basic steps in Walmart’s disciplinary procedure are:
- Verbal Coaching
- Written Coaching
- Decision Making Leave (suspension)
- Termination
Managers are trained to apply discipline consistently, avoiding discrimination against protected groups. They are required to document coaching sessions and provide copies to the associate.
While this Coaching for Improvement policy aims to avoid arbitrary termination, Walmart still reserves right to accelerate the process or bypass disciplinary steps altogether in some cases. Examples given in the corporate policy where immediate termination may occur include:
- Theft
- Dishonesty
- Workplace violence
- Gross misconduct
- Policy violations
Ultimately, store managers and market HR personnel have authority to terminate associates immediately for cause or no cause at all. But following the Coaching for Improvement process is the norm at Walmart.
Protections for Concerted Activity
One important exception where Walmart cannot fire at-will involves the National Labor Relations Act (NLRA). This federal law protects employees who engage in “protected concerted activity” together to improve working conditions.
Under the NLRA, it is illegal for Walmart to terminate associates for:
- Talking with coworkers about working conditions or compensation
- Joining coworkers to raise work-related complaints or issues
- Participating in labor organizing or union activities
- Going on strike with coworkers over working conditions
These group activities are protected, even though Walmart employees have no union representation at most locations. The NLRA prohibits punishing employees for banding together to try to improve their shared interests at work.
What to Do If You Believe Termination Was Unlawful
If a Walmart associate believes they were terminated unlawfully or in violation of company policy, there are steps they can take to respond:
- Raise a complaint internally to Walmart management or HR – Associates may be able to get their job back or negotiated severance pay.
- File a complaint with a government agency – The EEOC and state agencies investigate alleged wrongful termination based on discrimination or retaliation.
- Consult an attorney – An employment lawyer can advise on legal options, which may include filing a lawsuit against Walmart seeking reinstatement and/or damages.
- Contact a workers organization – Groups like United for Respect/OUR Walmart may be able to assist with legal aid, public pressure on Walmart, negotiations, or organizing.
Even if termination appears justified, bringing groups of employees together to address concerns about discharge practices can serve the purpose of improving Walmart’s application of policies and protecting against arbitrary treatment.
Conclusion
In summary, Walmart retains broad discretion to fire most employees in its stores and facilities without establishing cause thanks to at-will employment laws. However, terminations cannot violate public policy, employment discrimination laws, NLRA protections, or the company’s own disciplinary procedures. Associates who believe their discharge was unlawful or unjust have recourse through administrative complaints, private legal action, collective action, and Walmart’s internal accountability process.