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At-Will Employment

• Employment is "at-will" by default in 49 states — either party may end the relationship at any time, for any lawful reason, with or without notice.
• Montana is the sole exception: after a probationary period, an employer needs good cause to terminate.
• Most states still recognize exceptions — public-policy, implied-contract, and covenant-of-good-faith — that limit at-will terminations.

Contracts & Offer Letters

Written offer letters are standard, but formal employment contracts are common only for executives and specialized roles. Terms are otherwise governed by federal and state statute, company policy, and any applicable collective-bargaining agreement.

Working Hours and Overtime

The federal Fair Labor Standards Act (FLSA) sets a 40-hour standard workweek; non-exempt employees earn 1.5× their regular rate beyond 40 hours. There is no federal daily overtime — but California, Alaska, Nevada, and a few others require daily overtime after 8 hours, and California adds double time after 12 hours in a day. Exempt salaried employees above the federal salary threshold are not owed overtime.

Worker Classification

Workers are either W-2 employees or 1099 independent contractors. Misclassification carries significant penalties, and tests differ by jurisdiction — California applies the strict "ABC test," while the IRS uses a common-law control test.

Probationary Period

There is no statutory probation. Employers often set a 90-day introductory period, but it does not change at-will status or trigger any additional notice.