Formal job offer letter for new hires. Includes role, compensation, start date, and at-will employment terms. Use after verbal offer accepted to formalize the hire and clarify expectations before the start date.
An offer letter is a formal document a company sends to a candidate after a verbal offer has been accepted. It documents the key terms of employment — title, compensation, start date, conditions — and gives the candidate something to review before signing.
Short letter format. Confirms key terms. Most US employees sign offer letters, not contracts. Standard for at-will employment.
Detailed multi-page contract. Used for executives, sales roles with commission, or fixed-term positions. Often includes non-compete and severance.
In 49 US states (all except Montana), at-will means either employer or employee can end employment at any time, for any legal reason, with or without notice. Discrimination, retaliation, and breach of contract are still illegal.
Risky but legally possible if the candidate hasn't accepted yet. Once accepted, rescinding may expose you to "promissory estoppel" claims if the candidate quit their job or relocated based on the offer. Consult an attorney before rescinding.
Increasingly hard to enforce — California, Minnesota, North Dakota, Oklahoma ban most non-competes. FTC has banned them nationwide for most workers (effective 2024+). For executives or roles with trade secrets, use NDAs and non-solicits instead.
Standard: background check, drug screen (in applicable industries), I-9 verification (right to work in US), references. Some companies add: passing a skills assessment, completing onboarding paperwork, signing arbitration agreement.