Employee Rights and Employment Policy Journal

The Arizona Employment Protection Act: Another "Wrongful Discharge Statute" the Benefits Employers?

Abstract

By
Steven E. Abraham

Event study methodology results show that shareholder returns to Arizona firms rose significantly in response to the passage of a "wrongful discharge" statute passed in Arizona, the Employment Protection Act. This indicates that the Act benefited employers in Arizona, even though it places certain limits on Arizona employers' freedom to discharge employees. The results also show that the EPA benefited employers in Arizona more than the WDFEA, another "wrongful discharge statute" passed in Montana, benefited employers in Montana.