THE IMPLIED-IN-FACT CONTRACT EXCEPTION TO AT-WILL EMPLOYMENT - A CALLFOR REFORM

In this Comment, Julia Barnhart explores the California courts' applic ation of the implied-in-fact contract doctrine to at-will employment. Recently, the California Supreme Court expanded this doctrine to inclu de not only wrongful terminations, but employee demotions as well. Bar nhart critically examines the Court's rationale supporting this expans ion-that because employers are able to avoid the creation of implied-i n-fact contracts through traditional contract law, employers should be held to such contracts when they are created. In exploring how the co urts have applied the implied-in-face doctrine in the employment conte xt, Barnhart argues that courts have abandoned traditional contract la w. This abandonment has lead to confusion among the courts, conflictin g holdings, and employer uncertainty-a face that greatly undermines th e California Supreme Court's rationale for its expansion of the doctri ne. To help alleviate some of the confusion, Barnhart proposes that Ca lifornia courts return to traditional contract law when applying the i mplied-in-fact contract doctrine in the employment context, but ultima tely concludes that legislative action would be the most effective mea ns of reform.