HB 89 Summary

• Replaces the employment-at-will doctrine with a requirement that employers with 5+ employees can only terminate employees for "good cause" after one year of employment and 520 hours of work in the preceding 26 weeks.

• Defines "good cause" as either a reasonable basis related to employee conduct, performance, or employment record, or the employer's good-faith exercise of business judgment regarding economic goals, reorganization, or workforce decisions.

• Allows employers and employees to waive the good cause requirement through written agreement if the employer provides severance pay equal to one month's pay per year of service (maximum 30 months).

• Establishes an arbitration process through the Department of Labor for employees to file wrongful termination complaints within 180 days, with available remedies limited to reinstatement, backpay, fringe benefits, or severance pay (excludes punitive and compensatory damages except in retaliation cases).

• Does not apply to state/local government, employers with fewer than 5 employees, or termininations based on expiration of fixed-term employment contracts; preserves all rights under federal/state statutes, collective bargaining agreements, and other employment contracts.