'Heaven of Dismissal' Collapsing...? US Moves to Limit 'Unlimited Firing Rights'

Most US Companies Can Dismiss Employees Without Prior Notice or Consultation
Efforts Underway to Require Reasons Like Negligence or Poor Performance
Employment Protection Previously Implemented for Fast Food Workers

An employment protection bill is being promoted in the New York City Council to prevent employees from being dismissed without just cause. A similar bill was implemented last year for fast food workers. The photo shows a McDonald's store in the United States. Photo by AP Yonhap News

[Asia Economy Reporter Kim Sung-wook] A bill is being promoted in the New York City Council to prohibit employers from dismissing workers without just cause. Most American companies can immediately fire employees at the employer's discretion.

According to the Washington Post (WP) on the 8th, Councilwoman Tiffany Cab?n (Democrat) proposed that employers must provide "just cause" such as work-related negligence, poor performance, or business reasons when notifying employees of dismissal. Under this bill, if employees believe there is no just cause for losing their position, they can request relief procedures from city or state court judges.

Currently, most American companies include clauses in employment contracts allowing them to dismiss employees without prior notice, consultation, or special reasons. WP analyzed that labor advocates, who have struggled to improve such working conditions but have been obstructed by the U.S. Congress, are now seeking change through city or state-level legislation. They stated that this bill "provides job security to unstable employees, enables them to raise their voices against unfair treatment, and prevents dismissal for arbitrary reasons."

New York City previously granted similar rights to fast-food industry workers. Under the Employment Protection Act, which took effect in July last year, fast-food workers became the only group in the non-union private sector in the U.S. to be protected for job security. The New York State Restaurant Association opposed this measure, claiming it threatened "the flexibility and discretion necessary for managers to operate their businesses," and filed objections in court. However, in February, the U.S. District Court for the Southern District of New York dismissed the case, maintaining the protections for employees.

Councilwoman Cab?n and the majority party in the New York City Council are all Democrats, making the bill's passage quite possible. If passed, employees of financial companies and large corporations in New York will also be legally protected in their employment. Cab?n said, "There will likely be significant opposition from the industry regarding this proposal, but I am confident it will receive strong support from the public and the legislature."

Adrienne Adams, Speaker of the New York City Council who led last year's fast-food employment protection law, expressed hope that "the bill will extend to other businesses" and noted that "there are many industries where employees are treated poorly." However, she refrained from commenting on the current bill, stating that "it has not yet been introduced."

New York City is considered a leader in labor law reform. Last month, a bill mandating salary disclosure in job postings was enacted. Under this "Salary Disclosure Law," companies with four or more employees must specify the wage range for the position in job advertisements. The same regulation applies to internal promotions and transfer applicants. Violations of the law can result in fines of up to $250,000 (approximately 350 million KRW).