Louisiana is an “at-will” state when it comes to employment meaning when the employer and employee have not agreed to a limited term of employment, either the employee or the employer can break the relationship at any time without a reason. Term employment involves a stronger and a more defined agreement through a contract that is usually written, but that can also be established orally. An important part of such a contract defines the length of the employment – it can be, for example, for a given number of weeks, months, or years. In such employment, there must be a good reason for either side to terminate the relationship. Since there is a contract in this employment type, there are generally consequences for ending the relationship without a good reason.
Many disputes involving employment issues reach the courts because of the lack of an agreement or, as here, there is no meeting of the minds as to the terms of employment. The defendant, Willwoods Community, a precept of the Roman Catholic Church on Howard Avenue in New Orleans (“Willwoods”) hired the plaintiff Michael Read (“Read”) as its Executive Director in mid 2009. About a year later in 2010, Willwoods decided to terminate the relationship and let Mr. Read go, when it determined that there was an issue with Mr. Read’s employment.
Read filed a lawsuit against Willwoods alleging that he had an employment contract with Willwoods for a term of five years and Willwoods’ termination of him violated this contract. Read argued there had been a term of employment promised to him and he had resigned a lucrative and established position at Capital One because of this. He argued that he only did so based on his belief that he was going to have a five year commitment at Willwoods. Since there was a contract, he argued, Willwoods’ dismissal of him without cause meant he was entitled to the remaining pay and benefits as if he had finished out the five year term.