Yes, a job offer can be revoked even after you have accepted it. This experience can be unsettling and leave you with questions about why it happened and what your rights are. The reasons can range from internal company changes to issues that arise during pre-employment checks. Navigating the aftermath requires a clear understanding of the legal and practical dimensions of a rescinded offer.
Understanding At-Will Employment
The foundation of why most job offer revocations are permissible lies in a legal concept known as “at-will” employment. This doctrine is the standard in nearly every U.S. state and means that an employer can terminate an employee at any time, for any reason, or for no reason at all, provided the reason is not illegal. This principle extends to the period before employment officially begins, covering job offers that have been extended and accepted.
An accepted offer letter is not considered a binding employment contract under this doctrine. The at-will relationship gives employers the flexibility to rescind an offer if circumstances change. This applies even if you have already resigned from your previous position. If an employer can let an employee go on their first day without cause, they can also withdraw the offer before that day arrives.
This framework means that in many cases of a rescinded offer, a candidate may have limited legal options. The employer is not required to provide a reason for their decision unless specific conditions that create an exception are met.
Common Reasons for a Revoked Job Offer
Employers may rescind a job offer for various practical and business-related reasons that are legal. An offer is often contingent upon the successful completion of several pre-employment screenings. Common reasons for revocation include:
- Failed pre-employment screenings, such as a background check, drug test, or negative information from reference checks. These contingencies are usually outlined in the offer letter.
- Discovery of misrepresentation if an employer finds a candidate was dishonest about their qualifications, work history, or education. Honesty is expected, and any breach of that trust can have immediate consequences.
- Internal company changes, such as sudden budget cuts, a hiring freeze, or an organizational restructuring that eliminates the position. These decisions are unrelated to the candidate’s qualifications.
- A candidate’s own actions after accepting the offer. This can include unprofessional behavior, inappropriate social media posts, or attempting to renegotiate terms after they have been agreed upon.
When Revoking an Offer May Be Illegal
While the at-will doctrine provides broad latitude, there are specific circumstances where revoking a job offer is unlawful. An employer cannot rescind an offer for a discriminatory reason. Federal law prohibits employment decisions based on a person’s race, color, religion, sex, national origin, age, or disability. If a candidate can show that the offer was withdrawn because they belong to one of these protected classes, they may have a basis for a discrimination claim.
An accepted job offer can sometimes be considered a breach of contract, although this is less common. For this to apply, the offer letter or other written communication must contain language that goes beyond a standard at-will relationship. This includes specifying a fixed duration of employment or stating that termination can only occur for “just cause.” Vague statements about long-term employment are not sufficient to create a contract, but explicit promises might be.
An exception to at-will employment is the legal principle of promissory estoppel, which can apply even without a formal contract. A claim for promissory estoppel may be valid if a candidate reasonably relied on the employer’s promise of a job to their financial detriment. To succeed, the individual must demonstrate a clear job promise was made, that the employer expected them to rely on it, that they did reasonably rely on it, and that they suffered a tangible loss as a result. For instance, if you resigned from a stable job, sold your home, or incurred significant moving expenses based on the offer, you may be able to sue for damages. Courts in several states have recognized these claims, allowing individuals to recover costs associated with their reliance on the promise of employment.
What to Do If Your Job Offer Is Rescinded
Receiving news that your job offer has been withdrawn can be jarring, but it is important to handle the situation with professionalism. Maintaining a composed demeanor can prevent burning bridges and may keep you in consideration for future opportunities. You should:
- Politely ask for a clear reason for the revocation in writing. While the employer may not be obligated to provide one, a written explanation can offer clarity and may be useful if you suspect the reason was unlawful.
- Carefully review your offer letter and any other written correspondence you have from the company. Look for any language that might suggest a contract or specific promises that were made.
- Begin documenting any financial losses you have incurred as a direct result of accepting the offer. This could include relocation costs, lost wages from a job you quit, or other expenses.
- Consider seeking a consultation with an employment attorney if you believe the offer was rescinded for illegal reasons or if you suffered significant financial harm. A legal professional can assess your situation and advise you on whether you have a viable claim.
Protecting Yourself in the Future
While you cannot control an employer’s business decisions, you can take steps to minimize your risk in future job searches. Receive a comprehensive job offer in writing. The document should outline all terms, including your title, salary, start date, and any contingencies like background or reference checks.
Before resigning from your current position, seek written confirmation that all contingencies have been met and cleared by the new employer. It may be wise to negotiate a later start date, perhaps three or four weeks out, to provide time for these checks to be completed before you give notice at your old job. This step can prevent a difficult situation if an unexpected issue arises.
Throughout the hiring process, from the application to the final negotiations, prioritize transparency and honesty. Ensure the information on your resume is accurate and be upfront about any potential issues that might surface during a background check. Building a foundation of trust with a potential employer reduces the likelihood of surprises that could jeopardize your offer.