When should a job offer be withdrawn?

Author: Melanie Perez-Vellios, VP Group, LLC

There are many instances in which an employer may seek to withdraw a job offer. An employer may elect to withdraw the job offer if, for example, the prospective employee fails to meet the requisite conditions for employment, such as passing a drug test, a clear background check or physical exam. However, an employer must make sure that the withdrawal complies with both federal and state laws.

Further, if the employer encounters an unexpected change in its financial circumstances, withdrawal of a particular job offer may be a necessary business decision to ensure the employer's financial health. When withdrawing a job offer, an employer should advise the prospective employee as soon as possible, verbally and in writing, to provide the prospective employee with ample time to seek alternate employment and to prevent the prospective employee from seeking damages incurred in reliance of the original job offer.