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April 1, 2003

Employer can be held liable if offer of employment is revoked

When a promise of employment is not kept, the courts will take into consideration many factors such as the following:

• Did an offer of employment result in the employee resigning from another position?
• Did the offer result in the employee having to relocate his or her household to a significant distance?
• Did the offer cause the employee to cease efforts to obtain suitable employment elsewhere or to refuse suitable employment with another employer?
• Did the employee expend a substantial amount of his or her own money?

Therefore, unless an employer has discovered something unfavorable about an employee that would lead the employer to believe the individual is not suitable for employment or the employer is faced with a financial or business hardship that eliminates the need for the new employee’s position, an offer of employment should not be rescinded solely on the basis of the employment-at-will doctrine.

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