People posting that Tennessee is a "right to work" state are only partially correct. To be more correct, Tennessee is an "employment at will" state, which means that an employer can terminate an employee at any time for any reason. The employer does not have to provide cause. On the other hand, the terminated employee can then file for unemployment benefits if he or she has earned enough credits. Employer's unemployment tax rates are directly affected by the number of people they terminate that are placed on the unemployment rolls, in other words it indirectly costs an employer to terminate an employee, whether there is cause or not. This is why employers, both large and small, are hesitant to hire new employees. They want to be very sure that new hires will have enough work to be retained over the long haul.