There are a lot of reasons to stay employed. For one thing, being warm and dry while getting to eat food is pretty sweet. Managers know how much people like not starving, and sometimes they'll leverage that fact and scare their employees instead of properly managing them.
This person had just such a boss, who took great joy in the fact in telling her that she could fire her at any time. Surprisingly, this isn't a very effective way to hold onto staff in the long run. Who knew? It should also be noted that treating people this way gives them good cause to consider making a "screw it, I'll deal with it later" kind of decision.
The thing about at-will agreements is that they work both ways, so this employee was well aware that she could quit at any time she liked. So when the time was right, she took advantage of the agreement her boss seemed so keen on referencing.
For some bombastic exchanges, here are satisfying times people quit an unreasonable boss.
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