Is this legal in the US?
edit: Not even Montana. At-will for the first six months; fire for any legal reason. Protections kick in after that.
Non-at-will usually just means that that the company can only discharge people for categories of reasons enumerated in the law. In at-will states the company can terminate for any reason except for reasons that are specifically forbidden by law.
The acceptable reasons to discharge people in a non-at-will jurisdiction is likely to include reducing costs when the business is facing a downturn.