The recent hiring freeze and government efficiency mandates pushed by the Trump administration have led to a sizable shift in Federal employment. Thousands of employees, some of them provisional, have been let go from their respective departments, and many hoping to find employment at one of these organizations have had their job offers rescinded. As a nonprofit leader, you may have already or may have to deal with this kind of a situation, revoking an offer from someone or even a group of people that were hoping to assist your organization in its mission. These situations are difficult on a number of levels, and you could benefit greatly from building a deep understanding of the ins and outs of revocation.
Because the hiring process is bound by certain legal obligations, revocations, when done improperly, can expose your organization to legal risk. Additionally, they can create other issues inside and outside of your organization, impacting morale and your reputation as an employer. Job offer revocations are thankfully rare, but this can also mean that, as a discrete and uncommon event, your team may not be prepared to handle them with the care they require. Here are some key considerations when revoking job offers:
Common reasons for job offer revocations
Organizational change
This could be any number of things, from a shift in priorities away from a certain project to a projected shortfall in funding or a total freeze in hiring aimed at cutting costs. The basic idea is that the organizational priorities and capabilities have changed to the point that you no longer need or can no longer support a new hire.
New information
While the hiring process differs from organization to organization, occasionally certain pieces of information are discovered about prospective hires which lead the organization to rescind their job offer. Common examples are a professional reference which gives a negative assessment, a failed drug test, or an issue with the new hire’s credentials or fitness for the role.
Legal risks
It should be noted that a “job offer” is distinct from an employment contract. Although both constitute a form of legal agreement, a job offer is typically proffered in such a way that it is contingent on other factors, such as having good professional references, passing a skills or physical fitness assessment, passing a drug test, or other common requirements.
Promises made
While it isn’t legally binding like an employment contract, job offers can be considered a promise made in good faith, and as such binding under the concept of promissory estoppel. This legal concept essentially means that such a promise entitles the job applicant to restitution for any expenses or difficulties incurred should the promise be broken. For example, if you were to offer a job to someone in another city which required them to relocate and then rescinded the offer, you might be legally required to reimburse them for expenses incurred by moving, quitting their previous job, or even the emotional distress you caused them.
Evidence of discrimination
If for any reason it is suspected that a job offer was rescinded for a reason which is discriminatory, for example, on the basis of an applicant’s race, age, gender, or sexual orientation, this could result in legal action. While discrimination can be difficult to prove without hard evidence, there are examples of firms who have rescinded offers in ways that appeared discriminatory without direct evidence of that intent. For example, if you offered jobs to multiple people but, because of budget constraints, you were forced to rescind one of those offers, that person might suspect they were selected on a discriminatory basis relative to the other recipients.
How to handle revocations
Reducing risk early
Nonprofits sometimes have irregular funding which can make it difficult to project their budgets. Additionally, every organization can face a sudden crisis which threatens stability. Making sure you are fully committed to each offer is important, as is spelling out your expectations to job applicants.
When you send an offer, you should consider communicating as clearly as possible that their employment is contingent on whatever steps you have yet to complete, such as speaking with professional references and passing a drug test. This could help to head off the risk of a violation of their rights under promissory estoppel.
Seeking legal advice
Another key step you could take is to run the details of the revocation by a legal expert. A lawyer who is familiar with state, local, and federal employment law can help provide perspective into the nature of the financial risk you face, and could help you formulate a clear and effective plan. While this may seem onerous and potentially expensive, it could end up saving you much more time, effort, and finances should the applicant pursue legal action against you.
Developing a plan
It’s often a good idea to make sure the offer is rescinded as quickly as possible so as to reduce the burden on the applicant and your team, but you could also benefit from some planning. Some steps you could take to handle the process effectively are:
-Be clear and transparent about your reasons. If the applicant failed a background check or drug test, say so. If one of their references pointed out some inconsistencies or issues with their background, you could share that you found some inconsistencies. This makes it clear that any promises you offered them were contingent on them meeting certain criteria, and they had failed to do so.
-If it is an organizational issue, be empathetic and understanding, affirm that you consider them a qualified candidate, but that the organization or funding has shifted. You can even offer to help them locate similar roles. Taking these steps could help lessen the blow to your reputation and help internal morale as well. You might consider delivering the news in the most personal manner possible, in person if that is feasible or over a video call if not.
-You might also take steps to address the matter internally if any current teams ask about it. Because rescinding a job offer is a rare step, it might be seen as extreme or a sign of other issues at your organization. You could help head off these concerns by creating an internal communications plan with your management team.
501(c) Services is here to help
As career nonprofit experts, we’ve been through it all, from the successes to awkward and difficult issues like this one. You can use our expertise to identify new ways to further your mission while weathering the difficult moments. Learn more about our services by reaching out to us today.
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The information contained in this article is not a substitute for legal advice or counsel and has been pulled from multiple sources.
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