An Ohio man was laid off shortly after moving to Wisconsin. How to protect yourself in an at-will state

When an Ohio resident found out he landed a job at Associated Bank earlier this year, he saw it as a long-term job opportunity.

KC Ernst worked remotely for a few months until he was able to sell his house and move to Milwaukee in September. Then, nine days after he started working in the office as a vice president on the bank's fraud surveillance team, Ernst was unexpectedly laid off.

Associated Bank confirmed Ernst was laid off due to restructuring but declined to comment further.

While his layoff may have felt egregious, employment law expert Alexia Kulwiec said that both in Wisconsin and across the country, with exception of Montana, employees are hired "at-will."

"This means that an employer can terminate employment for a good reason, bad reason, or no reason at all, unless there are specific legal prohibitions or a contractual agreement," said Kulwiec, a law professor at the University of Wisconsin-Madison.

Still, for those who may find themselves in a similar situation, Kulwiec gave the Public Investigator team some advice for navigating the country's unique at-will system.

Our Public Investigator team wants to answer your questions, hear your tips and uncover the truth, anywhere in Wisconsin. Submit tips at jsonline.com/tips.

US has fewer employee protections than other countries

In general, Kulwiec said, there are far fewer legal protections for employees in the United States than most people realize.

Many other countries have stricter laws when it comes to terminating employees, outlining specific reasons why employees may be fired.

In the United Kingdom, an employer must show a valid, justifiable reason for ending your employment, and that they acted reasonably in the given circumstances. Justifiable reasons are listed on the U.K. government's website.

For example, if an employee can't keep up with important changes to a job, like a new computer system, employers are required to help them improve before firing them.

According to a 2022 National Employment Law Project survey of 1,849 adults in the U.S. workforce, two-thirds supported the adoption of “just cause” laws that would ensure they receive a valid reason and a fair process before losing their jobs.

The same survey found that "more than two out of three workers who have been discharged received no reason or an unfair reason for the termination, and three out of four received no warning before discharge."

Even informal agreements can make a case against an employer

If you were suddenly terminated after relocating for your job, you might have a case, but it depends on the circumstances and the agreement made between you and your employer, according to Kulwiec.

Kulwiec said contractual agreements between an employee and their employer can be oral or written.

Contracts may also be "implied," Kulwiec said, like if an employee reasonably relied on the promise of a job when selling one's house and relocating.

"Courts have certainly held in some cases that where an employee relocates, they detrimentally relied on the employer's promise and, if terminated, are entitled to damages," Kulwiec said.

In Ernst's case, he said he thought the move would be worthwhile due to a conversation with HR where he was told the bank wouldn't provide relocation benefits unless there was a need for the position. He also provided screenshots of messages between him and Associated Bank CEO Andrew Harmening from May where Harmening called Ernst's job responsibilities "vital" and said he was moving to Wisconsin "at the right time."

An email from Associated Bank to Ernst in April also offered Ernst various relocation benefits so he could make the move to Milwaukee.

"By providing relocation benefits, it is the hope of Associated Bank that a colleague remains employed with Associated Bank, and enjoys a productive and rewarding work experience," the email said.

When is it illegal to fire an employee in the US?

Even in "at will" states, it's illegal for employees to be fired for these reasons:

• Discrimination based on race, sex, age, nation of origin, disability, or genetic information
• Retaliation for reporting illegal or unsafe workplace practices
• Refusing to conduct illegal activities

Kulwiec said if someone feels they've been illegally laid off, they can seek assistance from the Equal Employment Opportunity Commission, or a state agency such as the Wisconsin Department of Workforce Development.

In workplaces where a collective bargaining agreement or union is in place, employers are further limited to specific terms and conditions regarding how they can fire employees, Kulwiec said.

Employees who feel they were let go unfairly can also sue.

For those in search of legal counsel, Kulwiec said most employment cases are brought on a contingency fee basis, which means a lawyer's payment depends on the amount awarded in a case. For example, a lawyer's agreed-upon compensation could be 30% of the settlement awarded to their client.

Negotiate the details, and get the job offer in writing

When it comes to relocating for a job, Kulwiec said the best advice she can offer is to obtain the job offer in writing and reach an agreement prior to moving.

Agreements in employment contracts could include employment for a specific period of time unless there is a "good cause" for termination, she said. Often, these agreements may list examples of "good causes" like fraud or stealing of trade secrets.

Relocation agreements, like the one Ernst received in April, outline how much the company will help with moving costs. While these agreements vary across companies, they can be negotiated.

Job search company Indeed.com provides advice on how to negotiate a relocation package with an employer, including expressing one's specific needs when it comes to relocating. For example, if it's better for an employee with children to move at the start of the next school year, that's something they should be able to express.

Some employees may be eligible for unemployment benefits

When it comes to unexpected layoffs, some employees may be entitled to unemployment benefits, Kulwiec said.

According to the Wisconsin Department of Workforce Development, you should apply for benefits with the state you completed your work in. For example, even if you live in another state, if your work was done in Wisconsin, you should apply through Wisconsin.

Each state has its own unemployment insurance program. A map of each state and its benefits can be found on the U.S. Department of Labor website.

About Public Investigator

Government corruption. Corporate wrongdoing. Consumer complaints. Medical scams. Public Investigator is a new initiative of the Milwaukee Journal Sentinel and its sister newsrooms across Wisconsin. Our team wants to hear your tips, chase the leads and uncover the truth. We'll investigate anywhere in Wisconsin. Send your tips to watchdog@journalsentinel.com or call 414-319-9061. You can also submit tips at jsonline.com/tips.