What to Do if the Job Offer is Revoked
Revocation of Employment Offer Proves Disastrous to Some
Oct 5, 2009
Imagine moving all the way across the country for an exciting new job. The packing, traveling, unpacking, and getting accustomed to the new surroundings is a fun adventure. Not so fun is when the new employee receives an email informing him or her that, although the company did in fact send an official offer letter that the person promptly signed and returned prior to moving, the employer has changed its mind and revoked the proposal.
Can companies really rescind an offer that has been signed, sealed, and delivered, and is it legal? What recourse do people have if they spend all the time, money, and effort in moving to another town only to discover they no longer have a new job to pay off their relocation expenses? Unfortunately this does happen – and here’s what can be done about it.
Why Do Employers Revoke a Job Offer?
An employment offer can be rescinded for any number of reasons. Perhaps the employer decides not to hire for the position, or determines they can hire from within at the last minute.
Often times, pulling out of a job offer is due to a negative response on a test such as a psychological exam, urinalysis, or polygraph. For example, the person has used drugs or viewed pornography on the job in the past six months. Other times the discovery of a criminal record, minor as it may be, can be cause for employment contract revocation.
Is it Legal for an Employer to Revoke a Job Offer?
Regardless of any hardship posed to the employee with respect to the acceptance of the employment letter, it is within a company’s rights to rescind the offer and not even provide a reason. While this may sound unfair, it is perfectly legal, thanks to state at-will employment laws, which essentially permit companies to let employees go at any time, for any reason whatsoever, or no reason at all.
“Many people are employed ‘at will,’ meaning that they don't have a formal employment contract with their employer and state law thus permits their employment to be ended at any time, or that they do have a written contract under which contains an ‘at will’ clause...” says attorney Aaron Larson in the September, 2003 ExpertLaw article, “Wrongful Termination of At Will Employment.”
The verbal offer is the easiest for the company to rescind; hence the reason candidates should always request a written letter stating salary, start date, and other important contractual information. Yet at the same time, employers are fully aware of employment law and thus protect themselves with the standard at-will clause whether the employment proposal is verbal or written.
However, there are instances where it is not within the employer’s legal rights to let an employee go. These exceptions include anti-discrimination laws, whistleblower protections, public policy exclusions, and procedural/contractual protections. For example, it is illegal to fire someone based on race, if they expose company wrongdoing, if they file for worker’s compensation, or if the employer fails to follow guidelines for disciplinary action before letting them go.
What Can an Employee Do if the Job Offer is Revoked?
Unfortunately, there isn’t much recourse for those whose signed, sealed, and delivered offer letters are suddenly revoked without explanation. Because of at-will employment laws, companies can terminate the contract for any reason at any time, and without a stated reason. However, if the termination is found to be in violation of civil rights, whistleblower, public policy, or contractual laws, the person may have a case for a wrongful termination lawsuit.
Before accepting a new position, candidates should always get the letter in writing. Particularly if relocating, the person should ask about the chances the offer will be rescinded and what action the company takes should this occur. If the employer has offered financial incentives such as relocation expenses and/or a bonus, the individual should ask what would happen to them. Covering all bases ensures that if the worst happens, the person is covered.
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