BOLGER, Justice.
An at-will employee was placed on probation and subsequently terminated for making an inappropriate comment at a work party. The employee sued the employer for breach of contract and breach of the implied covenant of good faith and fair dealing. The superior court granted summary judgment on both counts. We affirm the superior court's judgment because the employee was an at-will employee, his termination was not a breach of his employment contract, and he failed to present a genuine issue that the employer acted in bad faith.
Jim Morrison began working for NANA WorleyParsons, LLC (NANA) in 2006. His offer letter stated that he was an at-will employee. NANA's administrative procedures manual also stated that all employees serve at will. Morrison served in a piping design position at a remote work site on the North Slope.
Morrison was demoted from his lead design position in 2009. His supervisor notified Morrison that he was overstepping his authority by attempting to intervene in conflicts between co-workers, and Morrison indicated that he understood the reason for the demotion.
A few months later, Morrison's co-worker sent a long letter to Morrison's supervisor complaining that Morrison was neglecting his duties. The supervisor decided to place Morrison on a performance improvement plan (PIP), which was outlined in a letter signed by both parties. One of the PIP's complaints states, "[Y]ou were the agitator between employees; ... [you had] unnecessary involvement in issues of no concern to you, ... [and] you have not focused on your design duties. Rather, you have contributed to the friction in the group and uneasiness that exists to this day."
The PIP listed six conditions that Morrison must follow to maintain his employment:
Four days after signing the PIP, Morrison attended a going-away party for a co-worker, Pat Mogford. Morrison was sitting at a table with four women and another man. Two of the women were discussing the excessive amount of male-oriented television programming. Morrison mentioned a television show and commented that it discussed certain rude subjects, which he specifically described. Mogford complained to Morrison's supervisor that she had been offended, and NANA decided to terminate Morrison's employment.
Morrison sued NANA, alleging two theories: breach of contract and breach of the implied covenant of good faith and fair dealing. Following discovery, NANA moved for summary judgment on both theories, and the superior court granted NANA's motion. Morrison now appeals.
We review a grant of summary judgment de novo, "reading the record in the light most favorable to the non-moving party and making all reasonable inferences in its favor."
Ordinarily, an at-will employee may be fired for any reason that does not violate the covenant of good faith and fair dealing.
Morrison relied on a 1985 Ohio case, Mers v. Dispatch Printing Co.
On appeal, Morrison argues that the PIP modified his at-will status because its stated purpose was "to provide [him] the opportunity to correct [his] behavior," and because it expressed optimism that Morrison would be able to meet the conditions. Thus, Morrison contends that the PIP was an implied promise of continued employment for a reasonable period of time to determine if he could meet the conditions and that NANA breached this promise by firing him so quickly after it issued this plan. Morrison also argues that he reasonably relied on this implied promise by continuing to work for NANA despite his power to terminate the employment relationship at will.
We conclude that the PIP did not alter Morrison's at-will status. The PIP did not contain any express promise of continued employment. As NANA points out, Carlson decided to give Morrison "one more chance" and "[i]nstead of firing Morrison ... decided to place him on a performance improvement plan." As NANA maintains, it "merely informed Morrison that his failure to abide by the warnings in the PIP might result in further disciplinary action, including discharge." The PIP listed seven areas that needed correction, ranging from eliminating late arrivals and inflation of billable hours to "stop[ping his] contribution to friction in the group." This last area of correction included the specific clarification to Morrison that through his "unnecessary involvement in issues [of co-workers] that were of no concern to [him]," Morrison had "contributed to the friction of the group and uneasiness that exists to this day."
Morrison testified in his deposition that he understood Carlson to be telling him that he was "stirring the pot" among the employees and that "he needed to be cautious about what he said to his co-workers." Yet four days after Morrison received the PIP, and its warning of the need for correction in various areas, Morrison concedes that he brought up in a conversation with female co-workers the topic of a television show called "Manswers," describing it to his co-workers as "a male-oriented show that purported to answer questions of interest to men, stupid questions like, how many beers does it take to kill a guy, or how large [do] a woman's breasts need to be to crush a beer can...." The women at Morrison's table reported to Carlson that they were "offended" by Morrison's comments and "made to feel very uncomfortable" by them.
Moreover, recognizing the PIP as an enforceable promise of continued employment would also be inconsistent with NANA's procedures manual, which specifically stated that ordinary supervisors could not alter an employee's at-will status. We conclude that Morrison was an at-will employee who could be terminated for any reason, unless NANA violated the implied covenant of good faith and fair dealing.
"All at-will employment contracts are subject to the covenant of good faith and fair dealing."
On appeal, Morrison raises a somewhat different argument. He argues that NANA's failure to investigate the allegations against him breached the covenant of good faith and fair dealing. Morrison cites Mitchell v. Teck Cominco Alaska Inc. for the proposition that an investigation of employee misconduct must be conducted fairly.
In Mitchell, the employer's personnel policies required it to investigate any allegations of misconduct before terminating the employee.
In Ramsey, however, the employment contract expressly authorized the employer to terminate an employee without cause.
In this case, NANA's policies and procedures did not require it to conduct an investigation before terminating an at-will employee. We conclude that this case is more similar to Ramsey and Belluomini, where investigations were not required, than to Mitchell, where the employer's policies explicitly required an investigation.
On appeal, Morrison does not argue that NANA violated the covenant of good faith and fair dealing by treating him differently than other employees or that NANA committed any other violation of public policy. We conclude that the superior court properly granted summary judgment in favor of NANA on this issue.
Morrison's termination did not violate his at-will employment contract or the covenant of good faith and fair dealing. We therefore AFFIRM the superior court's order granting summary judgment.