Tennessee employment rules for employers

Tennessee recognizes a common-law retaliatory discharge claim for an at-will employee fired for trying to exercise a statutory or constitutional right, or for any other reason that violates a clear public policy evidenced by an unambiguous constitutional, statutory or regulatory provision (Webb v. Nashville Area Habitat for Humanity). A statutory claim also exists under the Tennessee Public Protection Act. (Levan v. Sears, Roebuck & Co., No. 3:11-cv-578 (E.D. Tenn. Nov. 25, 2013))

“(3) that the reason for his discharge was that he attempted to exercise a statutory or constitutional right, or for any other reason which violates a clear public policy evidenced by an unambiguous constitutional, statutory, or regulatory provision”

“(3) that the reason for the discharge was that the employee attempted to exercise a statutory or constitutional right, or for any other reason which violates a clear public policy evidenced by an unambiguous constitutional, statutory, or regulatory provision; and”

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A Tennessee employee handbook can become part of an employment contract, but only if it contains specific language showing the employer's intent to be bound by its provisions (Keller v. Casteel; Rose v. Tipton County); courts apply a high standard, and language reserving the employer's right to change the handbook generally prevents it from being a contract. (Freeze v. City of Decherd, No. 12-6160 (6th Cir. June 4, 2014) (published), citing Rose v. Tipton Cnty. Pub. Works Dep't, 953 S.W.2d 690, 692 (Tenn. Ct. App. 1997))

““In order to constitute a contract, however, the handbook must contain specific language showing the employer’s intent to be bound by the handbook’s provisions.””

“Tennessee courts have recognized that an employee handbook may, as a matter of state law, “become part of an employment contract,” but only if it “contain[s] specific language showing the employer’s intent to be bound by the handbook’s provisions.””

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In Tennessee the implied duty of good faith and fair dealing cannot modify the employment-at-will doctrine: an employer does not breach it by firing an at-will employee for any reason (Goot v. Metropolitan Government of Nashville). (Coker v. Carrier Corp., No. 4:05-cv-00051 (E.D. Tenn.), quoting Goot v. Metro. Gov't of Nashville & Davidson Cnty., No. M2003-02013-COA-R3-CV (Tenn. Ct. App. Nov. 9, 2005), and McGee, 106 S.W.3d at 67)

““the implied duty of good faith and fair dealing cannot modify the employment-at-will doctrine and, therefore, . . . an employer does not breach its implied duty of good faith and fair dealing when it discharges an at-will employee for any reason.””

“The employment-at-will doctrine is not affected, however, by the duty.”

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