Definition: Legal jargon for a legally-justifiable or legitimate business reason. For example, good cause for an employer to discharge an employee includes a layoff for valid financial reasons and serious employee misconduct. Good cause (such as justifying an unemployment insurance claim) for an employee to quit includes a serious, work-related problem that the employee tried to resolve without success. If a job applicant is to handle money on the job, the potential employer likely has good cause to check the employee's credit report. Good cause (or not) varies by state and is often up to the interpretation of the courts, arbitrators or administrative law judges.
Also Known As: Just Cause