Can an Employer Rescind a Job Offer? Your Legal Options (Expanded Definition)
Navigating the complexities of job offers can be challenging, especially when an employer rescinds an offer unexpectedly. Understanding your legal rights and options is crucial, and consulting an experienced attorney near you can provide valuable guidance in these situations.
Navigating the complexities of job offers can be challenging, especially when an employer rescinds an offer unexpectedly. Understanding your legal rights and options is crucial, and consulting an experienced attorney near you can provide valuable guidance in these situations.
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Discover your legal options if an employer rescinds a job offer. Learn about common legal reasons for rescission, your rights, and how to take action. If you need assistance, find an experienced attorney near you to help with wrongful rescission claims.
Flat vector illustration of a job seeker holding a rescinded job offer letter outside an office building, symbolizing legal issues and wrongful offer revocations.
Can an Employer Rescind a Job Offer? Your Legal Options
Receiving a job offer is exciting, but what happens if an employer suddenly takes it back? Can they legally rescind a job offer? And if they do, do you have any legal recourse?
The short answer: Yes, employers can rescind job offers, but there are limits. If an employer revokes an offer for an illegal reason, you may have grounds for a wrongful rescission claim or even compensation for damages.
This guide explains when an employer can and cannot rescind a job offer, your legal rights, and what to do if this happens to you.
💡 For every post in this series, scroll down to “Related Posts.”
Is It Legal for an Employer to Rescind a Job Offer?
Yes, but only for legal reasons.
No, if the rescission is discriminatory or violates an agreement.
Common Legal Reasons Employers Rescind Offers
Failed Background Check – If the candidate lied about their qualifications or has a criminal record relevant to the job.
Failed Drug Test – If the company has a legal drug policy and the candidate fails a pre-employment drug test.
Budget Cuts or Hiring Freezes – If the company loses funding or restructures after extending an offer.
Failed Reference Check – If previous employers provide negative feedback that impacts hiring decisions.
Candidate Refused to Sign an Agreement – If the candidate declines to sign a non-compete, NDA, or other required documents.
💡 Tip: Employers should clearly state in job offers that employment is contingent on passing background checks, drug screenings, and other conditions.
When Is It Illegal to Rescind a Job Offer?
An employer cannot rescind an offer for reasons that violate federal or state laws.
1. If It’s Based on Discrimination
Employers cannot revoke an offer based on:
Race, gender, or national origin (Civil Rights Act, Title VII)
Age (40+) (Age Discrimination in Employment Act - ADEA)
Pregnancy (Pregnancy Discrimination Act)
Disability or medical condition (Americans with Disabilities Act - ADA)
Religion (Title VII)
Example: A company offers a job to a pregnant candidate but later rescinds it after learning about the pregnancy. This could be illegal discrimination.
💡 Tip: If you suspect discrimination, consult an employment lawyer near you.
2. If the Offer Was Based on a Legally Binding Contract
If you signed an employment contract, the employer must follow its terms.
Some contracts require employers to provide notice before rescinding an offer.
Example: You sign a written employment contract guaranteeing a $90,000 salary for one year. If the employer rescinds the offer without cause, you may be entitled to damages or compensation.
💡 Tip: If you signed a contract, an attorney can help you enforce the agreement or seek damages.
3. If You Relied on the Job Offer & Suffered Financial Losses
Some states allow claims under promissory estoppel—meaning you can sue if:
You relied on the job offer (e.g., quit a previous job, relocated).
The rescission caused you financial harm.
It would be unfair to allow the employer to back out.
Example: You accept a job in another state, break your apartment lease, and move. If the employer suddenly rescinds the offer, you may have grounds for a legal claim for lost wages or moving costs.
💡 Tip:Document all expenses and losses caused by the rescinded offer.
What Should You Do If Your Job Offer Is Rescinded?
💡 If your job offer was unfairly revoked, take these steps:
Step 1: Ask for a Written Explanation
Request a formal letter explaining why the offer was rescinded.
Look for inconsistencies or illegal reasons.
Step 2: Review Your Offer Letter & Contracts
Check for contingencies (e.g., background checks, drug testing).
If an employment contract exists, the employer must follow it.
Step 3: Document Any Financial Losses
Keep records of:
Moving expenses (if you relocated).
Resignation notice from a previous job.
Any written communication about the offer.
Step 4: File a Complaint (If Necessary)
If you suspect discrimination, file a complaint with:
File a lawsuit if the offer was revoked illegally.
Negotiate a settlement with the employer.
💡 Tip: Many legal claims have filing deadlines, so act fast!
Can You Sue If a Job Offer Is Rescinded?
Yes, if the rescission violated employment laws.
You May Have a Case If:
The offer was rescinded due to discrimination.
You signed a contract, and the employer broke the agreement.
You suffered financial harm because you relied on the job offer.
An employment lawyer near you can evaluate your case and help you take action.
Final Thoughts: Know Your Rights & Protect Yourself
Yes, employers can rescind job offers, but they must follow the law. If you believe your offer was revoked unfairly, you may have legal options to seek compensation.
At ReferU.AI, we connect job seekers with top-rated employment lawyers near you. Our AI-powered system finds lawyers who specialize in wrongful rescission cases—so you get expert legal help fast.
Had a job offer rescinded unfairly? Get legal advice today!