Final answer:
The assertion is true that an employee terminated due to a personal grudge by a manager could contest the dismissal under the covenant of good faith in at least 20 states. Employment-at-will does have exceptions, and such cases can be influenced by market pressures and legal standards, including federal antidiscrimination laws.
Step-by-step explanation:
The statement that a manager terminating an employee because of a personal grudge could be contested in at least 20 states under the covenant of good faith and fair dealing exception to the employment-at-will doctrine is true. Employment-at-will means that an employer can terminate an employee at any time for any reason, except an illegal one, or for no reason without incurring legal liability. However, the covenant of good faith is an exception that requires employers to treat employees fairly and with a just cause for termination.
Title VII of the Civil Rights Act of 1964 makes it unlawful for employers to discriminate against any individual with respect to compensation, terms, conditions, or privileges of employment, based on race, color, religion, sex, or national origin. Furthermore, the Supreme Court ruling in Bostock v. Clayton County, Georgia expanded these protections to include sexual orientation and gender identity.
Market pressures, cultural sanctions, and legal sanctions can all force businesses, including those who might otherwise act discriminatorily or unfairly, to change their practices or face consequences such as the loss of employees, customers, or potential legal action.