Writing “Safe” Offer Letters

You opened a new business. It is taking off. You need to hire somebody quickly. You think you’ve found the perfect person and want to hire him. You quickly realize, however, you don’t know whether to prepare a letter or just make a verbal offer. If you write a letter, what should you include?

The effort used to select an employee can be wasted by a poorly handled offer of employment.  Job offer letters are traps for the unwary.  If drafted imprecisely, an employer can unknowingly undo presumptions that protect employers, create legal claims, or create unintended contractual liabilities.

One particular problem is the unintentional waiver of the at-will presumption.  Utah adheres to the employment-at-will doctrine, which “allows employers to ‘dismiss their employees at-will . . . for good cause, for no cause, or even for cause morally wrong, without being thereby guilty of legal wrong.’” If you are not careful in writing the letter, you could change the presumption and limit your ability to dismiss your employee even for what appears to be good reasons.

Another problem, in Utah most employment contracts are considered unwritten unilateral contracts which can be changed at the whim of either side so long as the other party continues to perform. This means that the exact nature of an employment contract’s terms can be difficult to determine if there is inconsistency in the description of what the employer is agreeing to provide. In a poorly drafted offer letter, you may unintentionally promise payment of all health care premiums while the employee is working for you even if premiums escalate sharply or generous vacation policies that may become unworkable later.

Moreover, in trying to appear friendly and casual, you may accidentally create liability for potential discrimination claims. Statements such as “we are a family company,” “you fit our company profile,” or “you should fit in well” should be avoided as they could be interpreted to imply later that a person who does not fit the company’s racial, religious, sexual, or health “profile” was limited in advancement opportunities.

As you can see, an offer letter should not be casually drafted nor done in haste. Carefully prepare and review any letter to assure you will not be creating a problem for your business later.