After going through the effort to apply and interview for a job, getting an offer comes with great excitement and relief. But that excitement can quickly turn to anger or disappointment if the employer suddenly rescinds that offer.
Having an employer suddenly rescind an offer can put you in a tough spot, especially if you have already started making big life changes under the impression you’d be working somewhere new. And so, making sure you understand why job offers are rescinded, the legal considerations involved, and the steps you can take if you find yourself in this situation is crucial for navigating it effectively.
It’s hard to make a definitive list of all the reasons an offer could be rescinded, as there are so many. But understanding some of the more common reasons can help you make sense of what is going on and know what to do next.
Sometimes, in fact many times, an employer’s decision to rescind an offer has nothing to do with the candidate and everything to do with the employer. There could be sudden financial difficulties or corporate restructuring that led to the withdrawal of an offer. For example, if a company is suddenly acquired by another, there could be a hiring freeze, or positions could be made obsolete.
After extending a conditional offer, employers typically run a background check and confirm work authorization before finalizing an employment decision. That way, if something in your background, like an undisclosed conviction or improper work authorization, the offer can be withdrawn.
If an employer finds out you lied about your qualifications, work history, or education, they’re likely to rescind the offer.
Employers don’t always have carte blanche to terminate employment, and the same can apply to withdrawing offers. If you find yourself with a rescinded job offer, it’s critical to understand your rights and whether you have any legal recourse.
If you signed a non-conditional, formal offer from an employer, it may be considered a binding contract. Meaning, if the employer withdraws the offer without a valid reason (contrary to the terms or laws of the state in which you live), you may have grounds to bring a suit for breach of contract.
Federal law protects people from employment discrimination based on certain on immutable characteristics, known as protected classes. These federally protected classes are: (1) Race, color, religion; (2) Sex, including pregnancy, sexual orientation, and gender identity; (3) National origin; (4) Age (40 or older); (5) Disability; and (6) Genetic information. If you have reason to believe an offer was withdrawn because you fall within one of these classes, you may have a claim for discrimination.
Promissory estoppel is a legal doctrine that allows a certain promise to be enforced even if there is no formal contract in place. For example, if your employer knows you quit your job, relocated, or made other life changes and then pulled the offer, you might be able to claim compensation.
Ask the employer for an explanation why the offer was rescinded. This will help you understand if there is anything you can do to salvage the offer.
See if there is any language in your offer discussing under what circumstances the offer can be pulled, and if the employer followed the proper procedure.
While it is certainly disappointing to lose out on a job you thought you had, you need to get back to applying for new positions as soon as possible.
If you believe the offer was rescinded unlawfully, consult with an employment lawyer to discuss your situation and potential next steps
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