Most states follow the employment-at-will doctrine, and employment for an indefinite term may be terminated at will and without cause. Absent a specific contract term to the contrary, this doctrine allows an employee to quit or be terminated without liability on the part of the employer or the employee, with or without cause.
But executive employees often have a written employment contract that provides for a more complex compensation structure—including incentives, bonuses, and severance pay—and limits the circumstances under which the executive may be fired or terminated to those situations in which the employer has cause for termination, as defined in the written employment agreement.
In Louisiana (LA), as in most states, the employment-at-will doctrine is the default rule, meaning that either the employer or the employee can terminate the employment relationship at any time, for any reason, or for no reason at all, with or without notice, as long as the termination does not violate specific laws (e.g., anti-discrimination statutes). However, this doctrine does not apply when there is a written employment contract that specifies the terms of employment. Executive employees often have such contracts that detail a more complex compensation structure, including incentives, bonuses, and severance pay. These contracts typically also restrict the conditions under which the executive can be terminated, usually requiring 'cause' for termination as defined within the agreement. Therefore, while most employees in Louisiana can be terminated at will, executive employees with written contracts may have additional protections and stipulations that govern their termination.