Getting a job offer can be an exciting time, but there’s always a chance the offer could fall through. Understanding when an employer can legally rescind a job offer is important for job seekers.
Can a job offer be rescinded after you accept?
Yes, in most cases a job offer can be rescinded even after you have accepted it. Accepting a job offer typically does not create an employment contract, unless there is a formal written contract stating otherwise. This means the employer can revoke the offer at any time before you start work.
There are a few exceptions where a job offer cannot be rescinded after acceptance:
– If you negotiated terms like salary, start date, benefits etc and received a formal offer letter, this may create a binding employment contract.
– If you detrimentally relied on the offer, for example by quitting your current job or moving, the employer may be liable for damages if they rescind.
– If the withdrawal violates anti-discrimination laws, for example rescinding due to race, gender, disability etc.
However, in general an employer can revoke a job offer for any reason as long as it’s not illegal discrimination. Make sure to get any job offer terms in writing.
Can a job offer be rescinded after you give notice?
Yes, a job offer can potentially be rescinded even after you give notice at your current job. Giving notice is not considered detrimental reliance, since you can typically retract your resignation.
However, if the new employer knows you resigned from your current job based on their offer, it would be in bad faith to rescind at that point. You could potentially sue for damages like lost wages from being unemployed.
Best practice is to wait until all pre-employment conditions are cleared before giving notice. Make sure the background check has completed and you agreed to a start date in writing. Get confirmation that the offer still stands before resigning.
Can a job offer be rescinded after you pass the background check?
Unfortunately yes, a job offer can still be rescinded even if you successfully pass the background check. Completing pre-employment screenings like background checks, drug tests etc does not guarantee your offer is secure.
The employer might decide they found a better candidate, budgets changed, business needs shifted or they simply changed their mind. As long as it’s not discrimination, rescinding at this stage is usually legal.
To protect yourself, try to get all job offer conditions in writing, like salary and start date. Make sure the offer letter states “conditional upon successfully passing background check” so it’s clear that’s the final requirement.
When is a job offer legally binding?
A job offer is legally binding when you have an employment contract with the employer. This turns the “at-will” offer into a contractual agreement. Examples of binding offers:
– Written and signed formal employment contract stating job terms.
– Offer letter with negotiated salary/benefits plus definite start date.
– Relying on the offer by quitting your job or moving for the role.
– Promises implying guaranteed employment like “we’ll take care of you.”
If the offer is still at-will without a contract, the employer can rescind any time before you start work. Get all terms in writing to strengthen the offer, but understand it’s still not legally enforceable.
Can a job offer be rescinded after the first day of work?
No, once you begin actual employment the job offer can no longer be rescinded. At that point employment laws protect you from being fired without good cause.
Exceptions would be if the employer discovers fraudulent information on your application, you fail a required drug test, or don’t have proper work authorization. Otherwise you have rights if let go after starting work.
The first 90 days on the job are typically a “probation period” where you can be terminated more easily. But the employer still requires proper documentation and procedure to fire you after you start working.
What to do if your job offer is rescinded
If your offer is unfortunately rescinded, here are some tips on what to do:
– Get the reason for rescinding in writing and keep documentation. You’ll need evidence if you consider legal action.
– Don’t immediately quit other jobs or relocate for the role. Wait for background checks, drug screenings and a written start date.
– Ask for “good faith” damages like reimbursement for expenses if you already relocated.
– File for unemployment benefits if you resigned from a prior job based on the offer.
– Review the documents to see if any binding contractual terms were breached.
– Consult an employment lawyer if you feel the withdrawal was done in bad faith or violates the law.
– Reflect on the situation and learn for future job searches. Get all terms in writing and don’t assume an offer is firm until your first day of work.
Conclusion
While it can be very frustrating to have a job offer fall through, in most cases the employer is legally allowed to rescind an offer at any time. Unless you have a formal employment contract, the job offer is considered “at will” employment and can be revoked prior to starting work. Protect yourself by securing all terms in writing, not making assumptions and waiting for pre-employment screenings to clear before giving notice at your current job. If you suffered true damages from relying on an offer, consult a lawyer to see if you have legal recourse. With caution and care, you can avoid having a rescinded job offer turn into a nightmare situation.
Stage | Can Offer be Rescinded? |
---|---|
After you apply | Yes |
After interviewing | Yes |
After verbal offer | Yes |
After written offer | Yes |
After accepting | Generally yes |
After giving notice | Yes, but unethical |
After background check | Yes |
After starting work | No, employee rights apply |
This table summarizes at which stages a job offer can typically be rescinded. Unless you have a binding employment contract, the offer is “at will” until your employment starts.
Frequently Asked Questions
Can a job offer be rescinded because of salary negotiations?
Yes, an employer can revoke a job offer if salary negotiations do not result in an agreed upon compensation. Negotiating salary and benefits is not legally binding, so the employer may walk away if you cannot compromise on pay.
If you have already set a start date, can the offer be rescinded?
Having an agreed upon start date helps solidify the job offer, but does not make it legally binding. The employer can still revoke the offer for any reason other than discrimination up until the date you start working.
Is a rescinded job offer discrimination if they already hired someone else?
Not necessarily. The employer is allowed to consider other applicants and change their mind about hiring you. It only becomes discrimination if the reason for withdrawing the offer was specifically because of your protected class status.
Can you collect unemployment if you quit your job based on a rescinded offer?
You can potentially collect unemployment benefits if you resigned from your prior job based upon a formal written offer that was later rescinded. You will have to provide documentation to the unemployment office.
What if you relocated or purchased a home based on the job offer?
Relocating or buying a home based solely on a job offer, before starting work, is considered at your own risk. You would not have legal recourse for recovery of these costs if the offer is rescinded. Get confirmation of employment prior to making major life changes.
How long before start date can an offer be rescinded?
There is no strict legal limit on when an offer can be rescinded prior to your employment start date. Even just days before you are set to start work, the employer could still revoke the offer as long as it’s not discriminatory or in bad faith.
Key Takeaways
- A job offer can be rescinded at any time before you start working, unless you have an employment contract.
- Get all terms of the offer in writing, but understand most offers are still “at will.”
- Wait until clearing all conditions and background checks before giving notice or relocating.
- If you suffered true damages, consult an attorney to review your options.
- Offers cannot be revoked once you begin actual employment.