When can a company withdraw a job offer?

Many job applicants wonder if the job offer extended to them is fixed once it is made. Unfortunately, the answer is no. In many cases, employers can rescind a job offer for any reason or no reason at all, even after you have accepted their offer.

When Can a Company Rescind a Job Offer

Organizations can withdraw a job offer for almost any reason, except discriminatory reasons. However, there may be legal consequences in some cases.

Why do employers have such broad freedom to rescind a job offer? Due to the at-will employment principle. Most states, except Montana, have laws that allow employers to fire an employee under most circumstances. These laws generally apply to the withdrawal of job offers as well.

When prospective employees fail background checks, misrepresent their backgrounds, or fail drug tests, there is often no legal recourse if the offer is rescinded based on those findings.

According to the Equal Employment Opportunity Commission, an employer can withdraw an offer even from a disabled candidate, but “only if they can prove that (the candidate) is unable to perform the essential functions of the job (with or without reasonable accommodations)”, or that the candidate poses “a significant risk of causing substantial harm” to themselves or others.

When Shouldn’t You Rescind a Job Offer

However, employers cannot rescind an offer for discriminatory reasons such as race, religion, gender, age, or national origin, and job applicants may have legal protection if they feel they have been discriminated against.

As a precautionary measure, candidates should wait until they meet all the conditions listed in the official job offer before resigning from their current job, selling their home, signing a lease, or incurring other moving expenses.

How to Handle a Rescinded Job Offer

In some states, candidates may have legal grounds to file a lawsuit seeking damages if they suffer consequences as a result of a rescinded job offer. In these cases, the plaintiff needs to prove damages, such as moving costs or lost income from a job they left after receiving the job offer.

If you believe you have a case, you should consult a lawyer in your state and ensure that the attorney has successfully handled similar cases and is willing to take compensation on a contingency basis.

Minimizing the Chances of Rescinding the Offer

It is possible to do everything right and still lose a job offer after it has been extended, but there are things you can do to mitigate the risks.

Be honest and upfront; if you are truthful, you won’t have to worry about the employer discovering anything later. Never lie on your resume or during the job interview, and be prepared to answer any questions about your background that may raise concerns for the employer, such as criminal records or bad debts.

Know your rights; generally, employers can conduct background checks, including checking credit histories and criminal records. However, the Fair Credit Reporting Act restricts how they can request and use information.

Additionally, some states and cities have additional restrictions on what employers can and cannot ask during pre-employment screening. As of February 2022, 37 states and more than 150 cities and counties prohibit employers from asking about criminal records. This “ban the box” legislation aims to protect job applicants from discrimination.

Consider getting the offer in writing; you can ask in the job offer letter to specify what will happen if the offer is rescinded. If so, it’s important to be clear about any signing bonuses, advances, and relocation assistance.

Ensure

If you are comfortable with the offer and the company, if the company has a bad reputation or the offer seems shady, think twice before signing the contract. Legally, companies can withdraw most offers. Practically, good employers usually won’t do this, so as not to scare off talented workers.

Keep a backup plan; accepting a new job is always risky, and it’s good to have a plan in case things don’t work out. Will you ask for your old job back, pursue another opportunity, or target a different employer through your networking efforts?

When you’re busy preparing for your new job, it’s worth taking a moment to think about what you would do in the worst-case scenario. You never know when you might need a backup plan.

Key Takeaways

Employers can withdraw job offers for almost any reason unless that reason is discriminatory, such as disability, gender, or race, and there may be legal consequences for employers who withdraw offers. In some cases, employees may be able to file lawsuits for damages if they can prove that they suffered losses as a result. You can take steps to avoid losing the offer by being honest in your request and considering getting the terms of the offer in writing, including what happens if the offer is withdrawn. And don’t forget to have a backup plan; no job is guaranteed.

The information contained in this article is not legal advice and does not substitute for such advice. State and federal laws change frequently, and the information in this article may not reflect your state laws or the most recent changes in the law.

Was this page helpful?

Thank you for your feedback!

Let us know why?

Other

Submit

Sources:

The National Law Review. “Can an Employer Legally Withdraw a Job Offer After It’s Been Made?”

SHRM. “Beware: Rescinding Job Offers Can Prompt Legal Consequences.”

NCSL.org. “At-Will Employment – Overview.”

The U.S. Equal Employment Opportunity Commission. “Job Applicants and the Americans with Disabilities Act.”

U.S. Equal Employment Opportunity Commission. “Employees & Job Applicants.”

Federal Trade Commission. “Background Checks: What Employers Need to Know.”

National Employment Law Project. “Ban The Box: U.S. Cities, Counties, and States Adopt Fair Hiring Policies.”

Source: https://www.thebalancemoney.com/when-can-a-company-withdraw-a-job-offer-2061407

.lwrp .lwrp-list-triple{
width: 32%;
}
.lwrp .lwrp-list-row-container{
display: flex;
justify-content: space-between;
}
.lwrp .lwrp-list-row-container .lwrp-list-item{
width: calc(12% – 20px);
}
.lwrp .lwrp-list-item:not(.lwrp-no-posts-message-item){

}
.lwrp .lwrp-list-item img{
max-width: 100%;
height: auto;
object-fit: cover;
aspect-ratio: 1 / 1;
}
.lwrp .lwrp-list-item.lwrp-empty-list-item{
background: initial !important;
}
.lwrp .lwrp-list-item .lwrp-list-link .lwrp-list-link-title-text,
.lwrp .lwrp-list-item .lwrp-list-no-posts-message{

}@media screen and (max-width: 480px) {
.lwrp.link-whisper-related-posts{

}
.lwrp .lwrp-title{

}.lwrp .lwrp-description{

}
.lwrp .lwrp-list-multi-container{
flex-direction: column;
}
.lwrp .lwrp-list-multi-container ul.lwrp-list{
margin-top: 0px;
margin-bottom: 0px;
padding-top: 0px;
padding-bottom: 0px;
}
.lwrp .lwrp-list-double,
.lwrp .lwrp-list-triple{
width: 100%;
}
.lwrp .lwrp-list-row-container{
justify-content: initial;
flex-direction: column;
}
.lwrp .lwrp-list-row-container .lwrp-list-item{
width: 100%;
}
.lwrp .lwrp-list-item:not(.lwrp-no-posts-message-item){

}
.lwrp .lwrp-list-item .lwrp-list-link .lwrp-list-link-title-text,
.lwrp .lwrp-list-item .lwrp-list-no-posts-message{

};
}