Some state courts hold that employment contracts contain implied covenants of good faith and fair dealing.

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Some state courts recognize that employment contracts include an implied obligation of good faith and fair dealing between the employer and employee. This means that both parties are expected to act in good faith towards each other and not engage in any unfair or deceptive behavior that would violate the basic principles of fairness and honesty. This implied covenant may be used to support claims for breach of contract or wrongful termination.

Some State Courts Hold That Employment Contracts Contain Implied Covenants