Home > Journals > WMLR > Vol. 26 (1984-1985) > Iss. 3 (1985)
William & Mary Law Review
Abstract
This article offers a comprehensive analysis of the evolving legal doctrine surrounding punitive damages in wrongful discharge claims brought by at-will employees. Traditionally, at-will employment granted employers broad discretion to terminate without cause, but recent judicial developments have recognized exceptions under three primary theories: breach of implied-in-fact contract, violation of public policy, and breach of the implied covenant of good faith and fair dealing. Mallor traces the historical emergence and erosion of the at-will doctrine, detailing how statutory and common law protections have expanded employee rights. She critically examines how punitive damages—once rarely awarded—have become increasingly significant in deterring employer misconduct and enforcing public norms. Drawing on parallels from tort and contract law, the article evaluates doctrinal justifications for punitive awards and outlines judicial responses across jurisdictions, ranging from permissive to restrictive. While acknowledging the risks of excessive penalties and unpredictability, Mallor argues for a principled application of punitive damages in cases involving clear abuse of managerial power or violation of public interests. Ultimately, she proposes guidelines to determine when such remedies are appropriate, striking a balance between the deterrent aims of punitive damages and the need to preserve legitimate employer discretion. This analysis contributes to a more coherent framework for understanding the intersection of employment law, private remedies, and public policy.