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Bill > HB755


MS HB755

MS HB755
Employment-at-will doctrine; abolish and create "Good Faith in Employment Act."


summary

Introduced
01/16/2026
In Committee
01/16/2026
Crossed Over
Passed
Dead
02/03/2026

Introduced Session

2026 Regular Session

Bill Summary

An Act Entitled The "good Faith In Employment Act"; To Abolish Employment At Will And To Require Employment Termination Decisions Be Made In Good Faith; And For Related Purposes.

AI Summary

This bill, titled the "Good Faith in Employment Act," aims to abolish the doctrine of "employment at will," which generally allows employers to terminate employees for any reason or no reason, and replace it with a requirement that employment termination decisions be made in "good faith." Good faith is defined as being for legitimate, business-related reasons and not for arbitrary or retaliatory motives, such as personal dislike, discrimination based on protected characteristics (race, sex, age, religion, etc.), retaliation for exercising legal rights, or violation of employee handbooks or promises of future employment. The act defines "discharge" to include "constructive discharge," where an employee feels forced to quit due to intolerable working conditions created by the employer, and applies to employers with 20 or more employees. Employees who believe they have been wrongfully terminated can sue for lost wages, mental distress, and potentially punitive damages, with caps on these damages varying based on the employer's size. The bill also specifies that these protections cannot be waived by employees beforehand and cannot be circumvented by employers through arbitration agreements or other means, and it does not repeal existing wrongful termination protections.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Died In Committee (on 02/03/2026)

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