Is it legal for a company to rescind a job offer after accepting?

Asked by: Margret Gibson  |  Last update: February 2, 2026
Score: 4.9/5 (75 votes)

Yes, an employer can usually withdraw an accepted job offer, especially in "at-will" employment states, for lawful, non-discriminatory reasons like failed background checks, dishonesty, or company budget/restructuring issues. However, if the offer was for a specific term or had contractual elements (beyond at-will), or if the candidate incurred significant, documented losses (like moving expenses) due to reliance, the employee might have a breach of contract or promissory estoppel claim.

Can an employer rescind a job offer after acceptance?

The decision to rescind a job offer must be permitted under applicable law. The following are examples of situations where an employer may wish to rescind a job offer: The candidate fails a legally required drug test. The company can no longer afford to hire a new employee due to budget cuts or financial instability.

Can a job offer be withdrawn after acceptance?

It is possible to withdraw a job offer after the employee has accepted. But if done incorrectly, you run the risk of being sued for breach of contract. This is because, technically, the candidate's employment starts at the point of acceptance, meaning the accepted job offer constitutes a legally binding contract.

Can a company withdraw an offer letter after accepting?

Well, an employer has the power to rescind job offers for various reasons. This can happen even after an employee has already accepted the offer. Note that job offer withdrawal can not be based on discrimination since it is illegal.

Can you sue if a company rescinds a job offer?

Unfortunately, an offer of employment is not considered an enforceable employment contract, so you cannot sue the company based on them rescinding the offer. You may be able to sue them for ``detrimental reliance'' if you took actions which cost you time and money based on your reliance of their employment offer.

Can an Employer Legally Rescind a Job Offer After Acceptance?

35 related questions found

Is rescinding a job offer illegal?

In most cases, if employment is "at-will," you can revoke an offer for any lawful, non-discriminatory reason.

What is the 3 month rule in a job?

The "3-month rule" in a job refers to the common probationary period where both employer and employee assess fit, acting as a trial to see if the role and person align before full commitment, often involving learning goals (like a 30-60-90 day plan) and performance reviews, allowing either party to end employment more easily, notes Talent Management Institute (TMI), Frontline Source Group, Indeed.com, and Talent Management Institute (TMI). It's a crucial time for onboarding, understanding expectations, and demonstrating capability, setting the foundation for future growth, says Talent Management Institute (TMI), inTulsa Talent, and Talent Management Institute (TMI). 

Is it common for job offers to be rescinded?

Rescinded job offers are uncommon, but there may be times when a company's needs change, and they withdraw a job offer, either shortly after making it or shortly before a new employee's start date.

Can an offer be revoked after acceptance?

Can an offer be revoked after acceptance? No, once an offer is accepted, it becomes a binding contract and cannot be revoked.

Is a job offer legally binding?

In some cases, you may receive an offer letter before being given an opportunity to interview for the role. If you receive an offer letter after an interview, it's vital to thoroughly review all its contents before making a decision. Once you sign and return the acceptance form, the agreement becomes legally binding.

Can an employer retract an offer?

Companies can rescind or revoke job offers, and when they do, it can be for several reasons. As a job candidate, getting an offer rescinded means you may now apply for new positions.

How to respond to a rescinded offer?

How to handle a rescinded job offer

  1. Clarify the situation. ...
  2. Be gracious. ...
  3. Seek feedback. ...
  4. Express interest in future opportunities. ...
  5. Improve your employability. ...
  6. Reach out to other employers.

What are the legal ramifications of rescinding?

The Basic Law of the Right to Rescind

[See California Civil Code §1689] Rescission extinguishes the contract, terminates further liability on the agreement, and restores the parties to their former positions. This generally requires each party to return any consideration received prior to the rescission.

Can an employer withdraw an accepted job offer?

By law, an employment contract could begin as soon as someone accepts a job offer, even if they only accepted it verbally. A contract can exist when clear terms are offered and accepted. An employer can withdraw a job offer.

What would cause a company to rescind an offer?

Reasons organizations may rescind a job offer include: Economic uncertainty or budget changes. Failed drug screens. Issues with the background check.

Can a hiring manager rescind a job offer?

However, job offers can sometimes be rescinded, leaving candidates in a lurch. This can happen for various reasons, such as changes in business needs, budget cuts, or the candidate's failure to meet job requirements.

Is it illegal for a company to rescind a job offer?

Generally, an employer may withdraw a job offer for almost any reason, so long as it is does not have an illegal basis. In California, employment is considered to be “at-will,” which means that an employee may quit a job at anytime and an employer may terminate the employee for any non-discriminatory reason.

Can a company take back an offer after accepting it?

A potential employer may legally rescind a job offer for a variety of reasons, and a rescission may or may not be accompanied by a formal Employment Rejection Letter. However, under federal law, employers may never rescind an offer for a discriminatory reason.

When can an acceptance be revoked?

An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.

What is the 3 month rule for jobs?

The "3-month rule" in jobs usually refers to a probationary period, a standard trial phase (often 90 days) where employers assess a new hire's performance, skills, and cultural fit before granting permanent status, with easier termination for both parties during this time. It also signifies a common benchmark for new employees to feel truly productive and settled, understanding new tools, teams, and company dynamics. It allows companies to evaluate fit and employees to learn the ropes, often impacting benefits eligibility and job security until completed.
 

Why would an employer rescind an offer?

Employers most often rescind jobs when they discover something negative about a candidate or when there's a change in their business. To protect yourself in the event your job offer is retracted, negotiate stipulations into your employment offer letter.

Will 2 C's get me rescinded?

Getting two Cs in your senior year might lead to rescission, especially for highly selective colleges, but it's not guaranteed and depends heavily on your overall transcript, the specific school's policies (often "no Ds or Fs"), and your explanation for the drop; generally, schools look for a significant decline or failing grades, not just a couple of Cs, but proactive communication with your counselor is key.
 

What is the 70 rule of hiring?

The 70% rule of hiring is a guideline suggesting you should apply for jobs or hire candidates if they meet about 70% of the listed requirements, focusing on trainable skills and potential rather than a perfect match, which often leads to better hires by bringing fresh perspectives and fostering growth, while also preventing paralysis by analysis for both applicants and recruiters. It encourages focusing on core competencies, transferable skills, and a candidate's eagerness to learn the remaining 30%. 

What is the 30-60-90 rule?

The "30-60-90 rule" refers to two main concepts: a special right triangle in geometry with angles 30°, 60°, 90° and sides in the ratio x∶x3∶2xx colon x the square root of 3 end-root colon 2 x𝑥∶𝑥3√∶2𝑥, and a professional development/onboarding framework that breaks down the first three months in a new role into learning (days 1-30), contributing (days 31-60), and leading/optimizing (days 61-90). It also appears as a productivity technique for structuring a morning (30 mins journaling, 60 mins exercise, 90 mins deep work) or a plan for settling into a new home.
 

Is it a red flag to leave a job after 3 months?

Employment gaps are common, and having one on your resume isn't usually a cause for concern. However, if it's not the first time you've left a job after only a few months, it might be a red flag for future employers. You may have money problems.