Sabetay v. Sterling Drug, Inc., 506 N.E.2d 919 (N.Y. 1987). · Go Syfert
Sabetay v. Sterling Drug, Inc., 506 N.E.2d 919 (N.Y. 1987). Cases Citing This Book View Copy Cite
Quick Summary

An employer may terminate an at-will employee for any reason unless an express agreement limits that right (refusing to recognize implied agreements from company policy manuals).

An employee sued for wrongful discharge, alleging he was terminated for refusing to participate in illegal activities and for reporting such activities in accordance with corporate policies. The employee claimed that the company's personnel manual and accounting code created an implied contract protecting him from dismissal. The court held that, absent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party. Because the employee failed to demonstrate an express limitation on the employer's right to discharge, the court concluded that the corporate policies did not constitute an enforceable contract.

948 citation events (272 in the last 25 years) across 38 distinct courts.
Strongest positive: Dukowitz v. Hannon Security Services (minn, 2014-01-02) · Strongest negative: Cavanaugh v. Doherty (nyappdiv, 1998-06-04)
Treatment trajectory · 1987 → 2026 · click a year to view as-of
1987 2006 2026
Top citers, strongest first. 50 distinct citers. How cited ↗
discussed Cited "but see" Cavanaugh v. Doherty (2×) also: Cited as authority (rule)
N.Y. App. Div. · 1998 · signal: but see · confidence high
As the employee manual was distributed to 30,848 employees and plaintiff has specifically pointed to a provision providing for discipline for good and sufficient cause, taking all of the allegations of the complaint as true we conclude that plaintiff has sufficiently pleaded a cause of action for breach of contract (first), even though the provision in the employee manual was not as explicit as that in Weiner v McGraw-Hill, Inc. (supra; but see, Sabetay v Sterling Drug, supra, at 335-336; Murphy v American Home Prods.
discussed Cited "but see" In Re Certified Question
Mich. · 1989 · signal: but see · confidence high
But see Sabetay v Sterling Drug, Inc, 69 NY2d 329 ; 514 NYS2d 209 ; 506 NE2d 919 (1987); Bolling v Clevepak Corp, 20 Ohio App 3d 113; 484 NE2d 1367 (1984); Smith v Teledyne Industries, Inc, 578 F Supp 353 (ED Mich, 1984) (applying Ohio law); Langdon v Saga Corp, 569 P2d 524 (Okla Ct App, 1976) (severance pay); Vinyard v King, 728 F2d 428 (CA 10, 1984) (applying Oklahoma law); Yartzoff v Democrat-Herald Publishing Co, 281 Or 651 ; 576 P2d 356 (1978); Wolk v Saks Fifth Ave, 728 F2d 221 (CA 3, 1984) (applying Pennsylvania law); Small v Springs Industries, Inc, 292 SC 481; 357 SE2d 452 (1987); Ost…
discussed Cited "but see" Bankey v. Storer Broadcasting Co.
Mich. · 1989 · signal: but see · confidence high
But see Sabetay v Sterling Drug, Inc, 69 NY2d 329 ; 514 NYS2d 209 ; 506 NE2d 919 (1987); Bolling v Clevepak Corp, 20 Ohio App 3d 113; 484 NE2d 1367 (1984); Smith v Teledyne Industries, Inc, 578 F Supp 353 (ED Mich, 1984) (applying Ohio law); Langdon v Saga Corp, 569 P2d 524 (Okla Ct App, 1976) (severance pay); Vinyard v King, 728 F2d 428 (CA 10, 1984) (applying Oklahoma law); Yartzoff v Democrat-Herald Publishing Co, 281 Or 651 ; 576 P2d 356 (1978); Wolk v Saks Fifth Ave, 728 F2d 221 (CA 3, 1984) (applying Pennsylvania law); Small v Springs Industries, Inc, 292 SC 481; 357 SE2d 452 (1987); Ost…
examined Cited "but see" Foley v. Interactive Data Corp. (6×)
Cal. · 1988 · signal: but see · confidence high
Regis Paper Co., supra, 685 P.2d 1081, 1087-1088 [if employer "creates an atmosphere of job security and fair treatment with promises of specific treatment in specific situations and an employee is induced thereby to remain on the job" those promises will be enforced (italics in original)]; Pine River State Bank v. Mettille (Minn. 1983) 333 N.W.2d 622, 626-629 [same]; Toussaint v. Blue Cross & Blue Shield of Mich., supra, 292 *677 N.W.2d 880, 892-893 ["contractual obligations can be implicit in employer policies and practices"]; see also Duldulao v. Saint Mary of Nazareth Hosp. (1987) 115 Ill.…
discussed Cited "but see" Anderson v. Savin Corp. (2×) also: Cited as authority (rule)
Cal. Ct. App. · 1988 · signal: but see · confidence high
(See Sabetay v. Sterling Drug, Inc. (1987) 69 N.Y.2d 329, 334-335 [ 506 N.E.2d 919 ]; see generally Martin v. New York Life Ins. (1895) 148 N.Y. 117 [ 42 N.E. 416 ]; but see Weiner v. McGraw-Hill (1982) 57 N.Y.2d 458 [ 443 N.E.2d 441 , 33 A.L.R.4th 110 ].) Moreover, although that jurisdiction does not follow California with respect to “tortious discharge” (see Murphy v. American Home Products Corp., supra, 58 N.Y.2d at pp. 300-302 [ 448 N.E.2d 86 ]) or “bad faith discharge” (see Sabetay v. Sterling Drug, Inc., supra, 69 N.Y.2d at pp. 335-336 [ 506 N.E.2d 919 ]; see also Murphy v. Ameri…
examined Cited as authority (verbatim quote) Dukowitz v. Hannon Security Services (3×) also: Cited as authority (quoted)
Minn. · 2014 · signal: see · quote attribution · 3 verbatim quotes · confidence high
the original purposes of the employment at-will doctrine were to afford employees the freedom to contract to suit their needs and to allow employers to exercise their best judgment with regard to employment matters.
examined Cited as authority (verbatim quote) Kanhoye v. Altana Inc. (3×) also: Cited as authority (quoted)
E.D.N.Y · 2009 · signal: see · quote attribution · 3 verbatim quotes · confidence high
absent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party.
examined Cited as authority (verbatim quote) Drake v. Delta Airlines, Inc. (3×) also: Cited as authority (quoted)
E.D.N.Y · 1996 · quote attribution · 3 verbatim quotes · confidence high
it is still settled law in new york that, absent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party.
examined Cited as authority (verbatim quote) Jerry M. Arledge v. Stratmar Systems, Inc. (14×) also: Cited as authority (rule), Cited "see", Cited "see, e.g."
2d Cir. · 1991 · signal: see, e.g. · quote attribution · 2 verbatim quotes · confidence high
significant alteration of employment relationships ... is best left to the legislature
examined Cited as authority (quoted) Brady v. Calyon Securities (USA) (2×)
S.D.N.Y. · 2005 · quote attribution · 2 verbatim quotes · confidence low
plaintiffs employment was not for a specified period of time and, therefore, the hiring is presumed to be an employment at will.
examined Cited as authority (quoted) Coan v. Tremont Advisors, Inc. (3×)
D. Conn. · 2001 · signal: see also · quote attribution · 3 verbatim quotes · confidence bake:cell
an employer has the right to terminate an at-will employee at any time for any reason or for no reason, except where the language has been limited by express agreement
examined Cited as authority (quoted) Bampoe v. Coach Stores, Inc. (3×)
S.D.N.Y. · 2000 · signal: see · quote attribution · 3 verbatim quotes · confidence high
it is still settled law in new york that, absent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party
examined Cited as authority (quoted) Columbus McKinnon Corp. v. China Semiconductor Co. (3×)
W.D.N.Y. · 1994 · quote attribution · 3 verbatim quotes · confidence low
stability and predictability in contractual affairs is a highly desirable jurisprudential value
discussed Cited as authority (rule) Glenn Federman v. NYSARC, Inc. – Jefferson County Chapter
N.D.N.Y. · 2026 · confidence medium
“New York has a well-established at-will employment doctrine: ‘[A]bsent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party.’” Albert v. Loksen, 239 F.3d 256, 264 (2d Cir. 2001) (quoting Sabetay v. Sterling Drug, Inc., 69 N.Y.2d 329, 333 (1987)).
discussed Cited as authority (rule) Navarra v. Dreimiller
N.D.N.Y. · 2025 · confidence medium
Plaintiff does not allege that his employment was subject to an agreement of fixed duration, and thus the Court presumes the employment relationship was a “hiring at will, terminable by either party.” Baron v. Port Auth. of N.Y. & N.J., 271 F.3d 81 , 85 (2d Cir. 2001) (quoting Sabetay v. Sterling Drug, Inc., 69 N.Y.2d 329, 333 (N.Y. 1987)).
cited Cited as authority (rule) Thorpe v. Delta Air Lines, Inc.
E.D.N.Y · 2024 · confidence medium
Sterling Drug, Inc., 506 N.E.2d 919, 922 (N.Y. 1987)); see also Stinnett v. Delta Air Lines, Inc., No. 18-cv-2704, 2019 WL 1493224 , at *11 (E.D.N.Y.
discussed Cited as authority (rule) Khan v. Arena Serv. Co., LLC
N.Y. Sup. Ct., New York Cty. · 2024 · confidence medium
Preliminarily, "absent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party" (Sabetay v Sterline Drug, 69 NY2d 329, 333 [1987]).
discussed Cited as authority (rule) Salescare, Inc. v. SEIU 1199 Natl. Benefits Fund
N.Y. App. Div. · 2023 · confidence medium
Plaintiffs' breach of contract claim against Auburn was properly dismissed because the agreement between the parties was at-will and therefore terminable at any time and for any reason ( see Sabetay v Sterling Drug , 69 NY2d 329, 333 [1987]).
discussed Cited as authority (rule) Ellen Zhou v. London Breed
9th Cir. · 2022 · confidence medium
Second, under New York law, which governs the contract, the implied covenant of good faith and fair dealing “can be implied only where the implied term is consistent with other mutually agreed upon terms in the contract.” Sabetay v. Sterling Drug, Inc., 506 N.E.2d 919, 922 (N.Y. 1987).
discussed Cited as authority (rule) Yang v. The Bank Of New York Mellon Corporation
S.D.N.Y. · 2021 · confidence medium
“New York has a well-established at-will employment doctrine” which requires that “[a]bsent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party.” Albert v. Loksen, 239 F.3d 256, 264 (2d Cir. 2001) (citing Sabetay v. Sterling Drug, Inc., 69 N.Y.2d 329, 333 (1987)).
cited Cited as authority (rule) Knopf v. Esposito
S.D.N.Y. · 2021 · confidence medium
As New York’s highest court teaches, “stability and predictability in contractual affairs is a highly desirable jurisprudential value.” Sabetay v. Sterling Drug, Inc., 69 N.Y.2d 329, 336 (1987).
discussed Cited as authority (rule) Ghuge v. Virtusa Corporation
S.D.N.Y. · 2020 · confidence medium
Bancorp v. F.D.I.C., 273 F.3d 509 , 514 n.4 (2d Cir. 2001) (“The parties' briefs assume that New York substantive law governs the issues of contract interpretation and statute of limitations presented here, and such implied consent is, of course, sufficient to establish the applicable choice of law.”); Corbett v. Firstline Sec., Inc., 687 F. Supp. 2001 ) (quoting Sabetay v. Sterling Drug, Inc., 69 N.Y.2d 329, 333 (1987)); see also Bernhardt v. Tradition N. Am., 676 F. Supp. 2d 301, 304-05 (S.D.N.Y. 2009) (“Where a term of employment is for an indefinite period of time, it is presumed to …
discussed Cited as authority (rule) Richards v. Security Resources
N.Y. App. Div. · 2020 · confidence medium
Corp. , 58 NY2d 293 [1983]), and defendant's written policies on use of force and willful misconduct submitted in opposition to defendant's motion to dismiss are insufficient to limit defendant's right to terminate plaintiff's employment ( see Sabetay v Sterling Drug , 69 NY2d 329, 336 [1987]).
discussed Cited as authority (rule) Carey v. Manhattan Coll. (2×) also: Cited "see"
N.Y. Sup. Ct., Bronx Cty. · 2020 · confidence medium
Sabetay v. Sterling Drug, 69 N.Y.2d 329 333 (1987).
cited Cited as authority (rule) IN RE: NAVIDEA BIOPHARMACEUTICALS LITIGATION
S.D.N.Y. · 2019 · confidence medium
Sept. 30, 2010) (quoting Sabetay v. Sterling Drug, Inc., 506 N.E.2d 919, 921 (N.Y. 1987); Brown v. Daikin Am.
discussed Cited as authority (rule) Henderson v. Physician Affiliate Group of New York P.C.
S.D.N.Y. · 2019 · confidence medium
Under New York law, employment relationships are presumed to be at-will, “terminable at any time by either party,” Baron v. Port Auth. of N.Y. & N.J., 271 F.3d 81 , 85 (2d Cir. 2001) (quoting Sabetay v. Sterling Drug, Inc., 506 N.E.2d 919, 920 (N.Y. 1987)), and remain so absent “an express limitation in the individual contract of employment curtailing an employer’s right to terminate at will,” Baron, 271 F.3d at 85 (internal quotation marks omitted).
discussed Cited as authority (rule) 159 MP Corp v. Redbridge Bedford
NY · 2019 · confidence medium
Freedom of contract is based on the understanding that “stability and predictability in contractual affairs is a highly desirable jurisprudential value” (Sabetay v Sterling Drug, 69 NY2d 329, 336 [1987]).
discussed Cited as authority (rule) Morizio v. Roeder (2×)
N.Y. Sup. Ct. · 2018 · confidence medium
Thus, "absent an [*5] agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party" ( Sabetay v Sterling Drug , 69 NY2d 329, 333 [1987]).
discussed Cited as authority (rule) Andersen v. Maines Food & Paper Service, Inc.
N.Y. App. Div. · 2017 · confidence medium
With regard to plaintiffs’ breach of contract cause of action, it is well-settled that “absent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party” (Sabetay v Sterling Drug, 69 NY2d 329, 333 [1987]; accord Coffey v Tetragenetics, Inc., 40 AD3d 1247, 1248 [2007]).
examined Cited as authority (rule) Gonick v. Adirondack Research & Mgt., Inc. (4×)
N.Y. Sup. Ct. · 2017 · confidence medium
Thus, "absent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party" ( Sabetay v Sterling Drug , 69 NY2d 329, 333 [1987]).
discussed Cited as authority (rule) Orr v. Yun
N.Y. App. Div. · 2017 · confidence medium
Plaintiff was not entitled to lost salary because, even if his right to employment under the subject agreement had been triggered by his proper exercise of the option, any employment thereunder would have been at will because its duration was not specified (see Sabetay v Sterling Drug, 69 NY2d 329, 333 [1987]).
discussed Cited as authority (rule) Webb v. Greater New York Automobile Dealers Ass'n
N.Y. App. Div. · 2016 · confidence medium
Contrary to the plaintiff’s contention, her allegation that the parties impliedly modified the terms of her employment status so as to restrict the defendant’s ability to terminate her was insufficient, as any such restriction must be express (see Smalley v Dreyfus Corp., 10 NY3d at 58 ; Sabetay v Sterling Drug, 69 NY2d 329, 336 [1987]; Miller v Huntington Hosp., 15 AD3d 548, 549 [2005]; Chazen v Person/Wolisky, Inc., 309 AD2d 889, 890 [2003]).
discussed Cited as authority (rule) Gootee v. Global Credit Services, LLC (2×)
N.Y. App. Div. · 2016 · confidence medium
He says there is age 67 is where he goes or where the damages go to, so that's where we are at and I believe he represents the Plaintiff is 67 so that's where we are at in terms of figuring out the damages." "[A]bsent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party" ( Sabetay v Sterling Drug , 69 NY2d 329, 333 [1987]; Rooney v Tyson , 91 NY2d 685, 689 [1998]).
discussed Cited as authority (rule) Hefter v. Elderserve Health, Inc.
N.Y. App. Div. · 2015 · confidence medium
Moreover, “absent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party” (Sabetay v Sterling Drug, 69 NY2d 329, 333 [1987]; see Matter of Oliner v Sovereign Bank, 123 AD3d 1041, 1042 [2014]; Minovici v Belkin BV, 109 AD3d at 522 ; Daub v Future Tech Enter., Inc., 65 AD3d 1004, 1005 [2009]).
discussed Cited as authority (rule) Andrichyn v. TD Bank, N.A.
E.D. Pa. · 2015 · confidence medium
Rather, it “can only impose an obligation ‘consistent with other mutually agreed upon terms in the contract.’ ” Geren, 832 F.Supp. at 732 (quoting Sabetay v. Sterling Drug, Inc., 69 N.Y.2d 329 , 514 N.Y.S.2d 209 , 506 N.E.2d 919, 922 (1987)).
discussed Cited as authority (rule) Kroshnyi v. U.S. Pack Courier Services, Inc.
2d Cir. · 2014 · confidence medium
We agree. 5 Under New York law, “absent an agreement establishing a fixed duration, 6 an employment relationship is presumed to be a hiring at will, terminable at any 7 time by either party.” Sabetay v. Sterling Drug, Inc., 69 N.Y.2d 329, 333 (1987); see 8 also Reddington v. Staten Island Univ.
examined Cited as authority (rule) Cruz v. HSBC Bank, USA, N.A. (4×) also: Cited "see"
E.D.N.Y · 2014 · confidence medium
Sabetay v. Sterling Drug, Inc., 69 N.Y.2d 329, 334 , 514 N.Y.S.2d 209, 211 , 506 N.E.2d 919, 920-21 (1987) citing Martin v. New York Life Ins.
cited Cited as authority (rule) African Diaspora Maritime Corp. v. Golden Gate Yacht Club
N.Y. App. Div. · 2013 · confidence medium
Thus, an organization is free to accept or reject any applicant in the exercise of its judgment (see Sabetay v Sterling Drug, 69 NY2d 329, 333 [1987] [employment]; Sitomer v Half Hollow Hills Cent.
cited Cited as authority (rule) African Diaspora Maritime Corp. v. Golden Gate Yacht Club
N.Y. App. Div. · 2013 · confidence medium
Thus, an organization is free to accept or reject any applicant in the exercise of its judgment (see Sabetay v Sterling Drug, 69 NY2d 329, 333 [1987] [employment]; Sitomer v Half Hollow Hills Cent.
discussed Cited as authority (rule) Sullivan v. Harnisch
NY · 2012 · confidence medium
We reached similar results in Sabetay v Sterling Drug ( 69 NY2d 329, 332 [1987]), where the plaintiff claimed “that he was discharged because he refused to participate” in illegal conduct including “tax avoidance schemes and maintenance of slush funds,” and in Horn v New York Times ( 100 NY2d 85 [2003]), where a doctor claimed that she was fired for refusing to violate patient confidentiality.
discussed Cited as authority (rule) Scott v. Harris Interactive, Inc.
S.D.N.Y. · 2012 · confidence medium
Sept. 30, 2010): Under New York law, “an employer has the right to terminate an at-will employee at any time for any reason or for no reason, except where that right has been limited by express agreement.” Sabetay v. Sterling Drug, Inc., [ 69 N.Y.2d 329 , 514 N.Y.S.2d 209 ] 506 N.E.2d 919, 921 (N.Y.1987).
discussed Cited as authority (rule) Waddell v. Boyce Thompson Institute for Plant Research, Inc.
N.Y. App. Div. · 2012 · confidence medium
It is well settled that, “absent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party” (Sabetay v Sterling Drug, 69 NY2d 329, 333 [1987]; see Lobosco v New York Tel.
cited Cited as authority (rule) Barbagallo v. Marcum LLP
E.D.N.Y · 2011 · confidence medium
Inc., 69 N.Y.2d 329 , 514 N.Y.S.2d 209 , 506 N.E.2d 919, 920-21 (1987) (same).
cited Cited as authority (rule) Commander Terminals Holdings v. Poznanski
N.Y. App. Div. · 2011 · confidence medium
Here, Nor then Bay’s and Affinity’s agreements with their former employees Imperatore and Sasso were contracts terminable at will (see Sabetay v Sterling Drug, 69 NY2d 329, 333 [1987]).
discussed Cited as authority (rule) Daub v. Future Tech Enterprise, Inc.
N.Y. App. Div. · 2009 · confidence medium
Co./NYNEX, 96 NY2d at 316; Matter of De Petris v Union Settlement Assn., 86 NY2d 406, 410 [1995]; Sabetay v Sterling Drug, 69 NY2d 329, 333 [1987]; Miller v Huntington Hosp., 15 AD3d 548 [2005]; Chazen v Person/Wolisky, Inc., 309 AD2d 889 [2003]).
discussed Cited as authority (rule) JCS Controls, Inc. v. Stacey
N.Y. App. Div. · 2008 · confidence medium
We agree with the court that defendant was an at-will employee inasmuch as there was no agreement establishing a fixed duration of employment (see Matter of De Petris v Union Settlement Assn., 86 NY2d 406, 410 [1995]; Sabetay v Sterling Drug, 69 NY2d 329, 333 [1987]).
discussed Cited as authority (rule) Goldman v. White Plains Center for Nursing Care, LLC
NY · 2008 · confidence medium
Aside from the fact that this position is contrary to the renewal provisions of the agreement, this contention conflicts with the well-established rule that, “absent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party” (Sabetay v Sterling Drug, 69 NY2d 329, 333 [1987]; see e.g.
cited Cited as authority (rule) Trakis v. Manhattanville College
N.Y. App. Div. · 2008 · confidence medium
Co./NYNEX, 96 NY2d 312, 316 [2001]; Sabetay v Sterling Drug, 69 NY2d 329, 333 [1987]; Miller v Huntington Hosp., 15 AD3d 548, 549 [2005]).
discussed Cited as authority (rule) Coffey v. Tetragenetics, Inc.
N.Y. App. Div. · 2007 · confidence medium
It has been firmly established that, “absent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party” (Sabetay v Sterling Drug, 69 NY2d 329, 333 [1987]; accord Lobosco v New York Tel.
cited Cited as authority (rule) Hubbell v. T.J. Madden Construction Co.
N.Y. App. Div. · 2006 · confidence medium
The record establishes that the subject oral agreement constitutes a “hiring at will, terminable at any time by either party” (Sabetay v Sterling Drug, 69 NY2d 329, 333 [1987]).
Retrieving the full opinion text from the archive…
Alexander Sabetay, Appellant,
v.
Sterling Drug, Inc., Respondent
New York Court of Appeals.
Mar 26, 1987.
506 N.E.2d 919
1987 N.Y. LEXIS 15806
POINTS OF COUNSEL, Wayne N. Outten for appellant., Alan M. Koral and Loraine M. Córtese for respondent.
Bellacosa, Hancock.
Cited by 364 opinions  |  Published
7 passages pin-cited by 7 cases
Pinpoint authority: #16,913 of 633,719
Citer courts: S.D. New York (5) · E.D. New York (4) · D. Connecticut (3) · W.D. New York (3) · Supreme Court of Minnesota (2)

Lead Opinion

OPINION OF THE COURT

Bellacosa, J.

Plaintiff asserts he was wrongfully discharged from employment because he refused to participate in certain improper, unethical and illegal activities, and because he "blew the whistle” on these alleged activities. He was employed by a division of the defendant corporation without a written contract, and alleges that his dismissal was in violation of two contractual obligations: the first arising from the "Corporate Employee Relations Policy” manual and the second arising from Sterling’s Code of Corporate Conduct and Internal Control Guide (together referred to as the "Accounting Code”).

The issue is whether plaintiff stated a cause of action by alleging that a statement in a corporate personnel policy manual created an enforceable contractual promise not to terminate him on any ground not mentioned in the manual, or by alleging that various corporate accounting policies constituted an employment agreement precluding plaintiff’s ter[*332] mination for refusing to participate in allegedly improper activities.

From June 1972 to December 1984 plaintiff, a director of financial projects, was employed by Sterling International Group, a division of Sterling Drug. He had been administering the dissolution of Sterling’s Greek manufacturing facility. The liquidation was completed in June 1983. In February 1984, plaintiff was recalled to New York and was notified of his discharge in July, when no job within Sterling or any of its subsidiaries could be found for him.

Plaintiff alleges that he was discharged because he refused to participate in certain illegal activities (i.e., tax avoidance schemes and maintenance of slush funds) arising out of the liquidation of Sterling’s Greek manufacturing facility, and because he disclosed these activities to his supervisor in compliance with what plaintiff believed to be corporate policy. His complaint alleges four contract and three tort causes of action, all based on wrongful discharge from employment.

Defendant Sterling moved, pursuant to CPLR 3211 (a) (7), to dismiss the complaint on the ground that none of the seven causes of action stated a cognizable claim. Supreme Court dismissed the tort actions but denied the motion as to the four contract causes of action. The Appellate Division affirmed the dismissal of the causes of action sounding in tort and also dismissed the four claims based on a breach of an implied contract of employment. Although the complaint was dismissed in its entirety, plaintiff, on appeal to this court, challenges only the dismissal of the four contract causes of action. We agree with the Appellate Division that plaintiff has failed to state a cognizable cause of action for breach of any implied contract rights.

As the basis for the first breach of contract claim, Sabetay contends that Sterling’s personnel manual, which enumerates seven grounds for termination, establishes an implied promise that those are the only grounds for termination and that plaintiff’s termination without cause amounted to a breach of that implied contractual agreement.

The three remaining contract claims (plaintiff’s second, fourth and sixth causes of action) are based on Sterling’s written policies, which plaintiff contends require an employee to refrain from certain illegal or unethical activities and impose a duty on the employee to report such activities to senior management officials. Sabetay argues that these poli[*333] cies, coupled with a statement on the employment application that all Sterling employees are to comply with company rules and regulations, create an implied agreement not to dismiss an employee for activity in accordance with these very policies.

It is still settled law in New York that, absent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party (Martin v New York Life Ins. Co., 148 NY 117, 121). The original purposes of the employment at-will doctrine were to afford employees the freedom to contract to suit their needs and to allow employers to exercise their best judgment with regard to employment matters.

In recent years, however, the unfettered power of employers to dismiss employees without cause has come under sharp scrutiny (see, Blades, Employment At Will vs. Individual Freedom on Limiting the Abusive Exercise of Employer Power, 67 Colum L Rev 1404 [1967]; and see generally, Note, Protecting Employees At Will Against Wrongful Discharge: The Public Policy Exception, 96 Harv L Rev 1931 [1983]). To offset the harsh effect of the at-will doctrine and to afford workers a measure of job security, other courts have carved out exceptions to the common-law employment at-will doctrine (see, Peterman v International Bhd. of Teamsters, 174 Cal App 2d 184, 344 P2d 25; Trombetta v Detroit, Toledo & Ironton R. R. Co., 81 Mich App 489, 265 NW2d 489; Novosel v Nationwide Ins. Co., 721 F2d 894 [3d Cir]; Sheets v Teddy’s Frosted Foods, 179 Conn 471, 427 A2d 385 [recognizing claims of wrongful discharge based on dismissal for refusing to commit an unlawful act, or for performing a public obligation or for exercising a legal right]; see also, Toussaint v Blue Cross & Blue Shield, 408 Mich 579, 292 NW2d 880 [recognizing an implied-in-fact agreement limiting the employer’s right to dismiss an at-will employee]; see also, Monge v Beebe Rubber Co., 114 NH 130, 316 A2d 549; Cleary v American Airlines, 111 Cal App 3d 443, 168 Cal Rptr 722 [recognizing an implied-in-law covenant of good faith and fair dealing in employment contracts which limits the right to discharge without just cause]).

In Weiner v McGraw-Hill, Inc. (57 NY2d 458), this court dealt with its long-standing acceptance of the common-law rule. The plaintiff, who had begun his career with another publishing house, was invited to join the staff of McGraw-Hill. As part of its recruitment effort, McGraw-Hill’s representative[*334] assured the plaintiff that it was company policy not to terminate employees without just cause, and that employment at McGraw-Hill would bring the advantage of job security. Moreover, the application form Weiner signed specified that his employment would be subject to the provisions of the Mc-Graw-Hill handbook on personnel policies. The handbook stated that "[t]he company will resort to dismissal for just and sufficient cause only, and only after all practical steps toward rehabilitation or salvage of the employee had been taken and failed. However, if the welfare of the company indicates that dismissal is necessary, then that decision is arrived at and is carried out forthrightly” (id., at 460-461). Weiner alleged that he had relied on these assurances when he left his former employer, forfeiting accrued fringe benefits and a proffered salary increase.

After eight years of employment, Weiner was advised that he was discharged for "lack of application” (id., at 461). He sued, alleging a breach of contract. McGraw-Hill countered that there was no contract of employment and that its promises of job security were not binding. While we found for Weiner, we adhered to our view that an employer has the right to terminate an at-will employee at any time for any reason or for no reason, except where that right has been limited by express agreement. The language in the McGrawHill handbook, coupled with the reference to the handbook in the employment application, amounted to an express agreement between those parties limiting the employer’s otherwise unfettered right to terminate its employees. We also noted that to support his breach of contract claim, Weiner had alleged the following significant factors: "[F]irst, plaintiff was induced to leave Prentice-Hall with the assurance that Mc-Graw-Hill would not discharge him without cause. Second, this assurance was incorporated into the employment application. Third, plaintiff rejected other offers of employment in reliance on the assurance. Fourth, appellant alleged that, on several occasions when he had recommended that certain of his subordinates be dismissed, he was instructed by his supervisors to proceed in strict compliance with the handbook and policy manuals because employees could be discharged only for just cause. He also claims that he was told that, if he did not proceed in accordance with the strict procedures set forth in the handbook, McGraw-Hill would be liable for legal action.” (Id., at 465-466.)

Not surprisingly, because of the explicit and difficult plead[*335] ing burden, post- Weiner plaintiffs alleging wrongful discharge have not fared well (see, O’Connor v Eastman Kodak Co., 65 NY2d 724; Murphy v American Home Prods. Corp., 58 NY2d 293; Collins v Hoselton Datsun, 120 AD2d 952; Citera v Chemical Bank, 105 AD2d 636; Patrowich v Chemical Bank, 98 AD2d 318 [claim dismissed because the language relied on was not sufficient to establish an express agreement]; Rizzo v International Bhd. of Teamsters, 109 AD2d 639 [claim dismissed because employee failed to establish detrimental reliance on the assurance of job security]).

In Murphy v American Home Prods. Corp. (58 NY2d 293, supra), we not only refused to recognize a common-law tort theory of liability based on abusive or wrongful discharge but, more important and relevant to the instant case, we refused to adopt the implied covenant of good-faith analysis recognized in some jurisdictions.

Murphy had alleged that he had been discharged for internally reporting to top management certain alleged accounting improprieties. He contended that his company’s internal regulation required him to refrain from engaging in such illegal activities and also compelled the reporting of such activities. On Murphy’s breach of contract claim he urged that, although his employment was of indefinite duration, there was an implied obligation in all employment contracts to deal fairly and in good faith, and that a termination in violation of that obligation exposes the employer to liability.

We rejected plaintiff’s invitation to find an implied covenant of good faith in the employment contract. In so ruling, we distinguished an employment contract from other types of contract where the implied-in-law theory has been adopted. Noting that a covenant of good faith can be implied only where the implied term is consistent with other mutually agreed upon terms in the contract, we stated: "New York does recognize that in appropriate circumstances an obligation of good faith and fair dealing on the part of the party to a contract may be implied and, if implied, will be enforced (e.g., Wood v Duff-Gordon, 222 NY 88; Pernet v Peabody Eng. Corp., 20 AD2d 781). In such instances the implied obligation is in aid and furtherance of other terms of the agreement of the parties. No obligation can be implied, however, which would be inconsistent with other terms of the contractual relationship * * * in which the law accords the employer an unfettered right to terminate employment at any time. In the[*336] context of such an employment it would be incongruous to say that an inference may be drawn that the employer impliedly agreed to a provision which would be destructive of his right of termination * * * to imply such a limitation from the existence of an unrestricted right would be internally inconsistent.” (Id., at 304-305.) Lastly, we concluded that Murphy had failed to establish an express limitation on the employer’s right of discharge under the strict guidelines established in Weiner (id., at 305).

Dispositive in Murphy was plaintiffs failure to establish an express limitation on his employer’s right of discharge (id., at 305; accord, O’Connor v Eastman Kodak Co., 65 NY2d 724, supra). Although plaintiff had made general references to an employer’s manual, he cited no provisions pertinent to the right to termination — certainly none rising to the explicit restriction that, in the circumstances of Weiner, was found to be actionable (Murphy v American Home Prods. Corp., 58 NY2d 293, 305, supra).

As in Murphy, plaintiff Sabetay has failed to demonstrate a limitation by express agreement on his employer’s unfettered right to terminate at will, and all four of the breach of contract causes of action must be dismissed. To the contrary, the language in Sterling’s personnel handbook, "Accounting Code” and employment application refutes any possible claim of an express limitation. The personnel manual was circulated to an extremely limited number of Sterling managerial employees solely for the purpose of determining posttermination benefits, and plaintiff was not one of those few employees authorized to receive a copy. Similarly, the "Accounting Code” and statement on the employment application requiring Sterling employees to abide by company rules do not, taken together, rise to an express agreement that Sterling would not dismiss an employee for following its policies of full disclosure of business improprieties. Rather, these two documents merely suggest standards set by Sterling for its employees’ performance of their duties that, without more, cannot be actionable.

We have noted that significant alteration of employment relationships, such as the plaintiff urges, is best left to the Legislature (see, Murphy v American Home Prods. Corp., 58 NY2d 293, 301-302, supra), because stability and predictability in contractual affairs is a highly desirable jurisprudential value.

[*337] Indeed, the Legislature has responded to this appropriate sensitivity by enacting numerous protections against abusive discharge and by prohibiting employers from discharging at-will employees for reasons contrary to public policy (see, Judiciary Law § 519; Executive Law § 296 [1] [e]; Labor Law §§ 215, 740; Civil Service Law § 75-b).

In sum, to sustain the plaintiff’s complaint in this case, the court would have to relax the Weiner requirements, to expand the Weiner holding into the implied contract category, and to overrule the recently resolved Murphy rejection of implied covenants in employment relationships. Based on stare decisis principles and sound contractual and policy reasons, we do not believe we should do any of those things, no less all of them.

Accordingly, the order of the Appellate Division should be affirmed.

Concurrence

Hancock, Jr., J.

(concurring). Like the concurring Justice at the Appellate Division,* I cannot disagree with the majority’s conclusion that dismissal of the complaint is compelled by our decisions in Murphy v American Home Prods. Corp. (58 NY2d 293) and Weiner v McGraw-Hill, Inc. (57 NY2d 458). Because the majority bases its decision on stare decisis and shows no inclination to relax the strict Murphy-Weiner employment at-will rule, I am constrained to concur in its result.

I add only that the effect of applying the Murphy-Weiner rule to require dismissal of plaintiff’s second, fourth, and sixth causes of action seems particularly unfortunate. The thrust of these causes of action is that plaintiff was fired for doing precisely what he was compelled to do by defendant’s written "Accounting Code”. This code states, among other things, "[i]t is corporate policy to prohibit illegal or improper payments from company funds or assets * * * It is the responsibility of every employee promptly to report to General Counsel any knowledge of infractions of this policy. Any employee who fails to follow these policies will incur a penalty. Such penalty will range from lack of promotion (censure), to demotion or dismissal”. Plaintiff alleges he was fired for reporting improper activities pursuant to this policy. Under the MurphyWeiner rule as applied, defendant is precluded from claiming that the law, under the circumstances he alleges, imposes an obligation on the employer not to fire him for doing what he[*338] may be fired for failing to do. Relaxing the Murphy-Weiner rule to recognize an implied duty under these circumstances would not require an abandonment of the Murphy rule that a good-faith obligation will not be read into all employment at-will contracts. Such limited exception — "that in every contract there is an implied undertaking on the part of each party that he will not intentionally and purposely do anything to prevent the other party from carrying out the agreement on his part” (Grad v Roberts, 14 NY2d 70, 75) — is consistent with basic rules of contract law and has ample support in precedent and other recognized authority (see, e.g., Murphy v American Home Prods. Corp., supra, at 310-311 [Meyer, J., dissenting]; Grad v Roberts, supra, at 75; Wood v Duff-Gordon, 222 NY 88, 91; Wakefield v Northern Telecom, 769 F2d 109, 112; 22 NY Jur 2d, Contracts, § 201 [1982]; Restatement [Second] of Contracts § 205 [1979]).

Chief Judge Wachtler and Judges Simons and Titone concur with Judge Bellacosa; Judge Hancock, Jr., concurs in result in a separate opinion; Judges Kaye and Alexander taking no part.

Order affirmed, with costs.

Justice Ellerin concurred in the result on constraint of Murphy v American Home Prods. Corp. (58 NY2d 293).