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 North Carolina, 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, with or without cause, and without incurring legal liability, as long as there is no specific contract stating otherwise and the termination does not violate any anti-discrimination laws or other legal protections. However, executive employees often negotiate written employment contracts that detail more complex compensation structures, such as incentives, bonuses, and severance packages. These contracts typically also restrict the conditions under which an executive can be terminated, usually requiring the employer to have 'cause' as defined within the agreement. Such contracts supersede the at-will doctrine and provide executives with greater job security and defined legal recourse in the event of a dispute over termination.