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I received a verbal offer, "...contingent on background, drug, and physical...", from a company that stated in the interview process they "do not do offer letters." This is a privately-held, family-run business and they operate by their own set of rules.

The offer was made in this manner: "...I am offering you the job, contingent on Background and Drug, which I have to say..." "...The comp will be base plus signing bonus because I can do more that way..."

I took the physical and drug screen and passed and my background cleared later that week. I asked the HR person handling this if I could resign from my current position and she said, "Yes. This is how they operate and everything is in line with their requirements." I received the New Hire paperwork, resigned my job, filled out the paperwork, and returned it. I am now on ice, "waiting" for one brother to talk to the other, when I know for a fact they already talked about this and the one brother told the other brother to move forward. I have this in an e-mail.

They may take me off ice in the next few days or week and if they do not, is this a valid job offer which was reneged on, breaching our verbal agreement?

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What do you mean by "resign" - do you mean "re-sign" or "turn down" ? What about "I am now on ice" ? – enderland Dec 12 '12 at 21:09
My apologies for lack of clarity. I resigned from my existing job, as in I gave my notice. I am "on ice" with the folks who told me I had a job, in that they have put me in a waiting pattern after telling me I had the job and giving me the New Hire paperwork. – Samantha Dec 12 '12 at 21:12
What country/state are you in? Makes a big difference as to the answer. – Stephen Dec 12 '12 at 21:16
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Please refer to the FAQ discussion of legal questions. That said, the email might help if you were to actually take them to court. However, in the future, I recommend responding to "This is how we do business" with something like "Sorry, but the way I do business is to require a written job offer." and wait until you receive it to submit your resignation to your current employer. – GreenMatt Dec 12 '12 at 21:53
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IANAL but legal "recourse" (in the form of a court date) can show up on future background checks. Nothing raises a red flag to an employer like a potential hire who has sued previous/prospective employers. If you're going to do that, you'll want to be certain it is really, really worth it. – Angelo Dec 13 '12 at 15:58
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2 Answers

up vote 9 down vote

Legally, assuming you are in the United States (other countries likely have very similar approaches), a verbal contract is just as binding as a written one. The problem, however, is that it is far more difficult to prove that there was a verbal contract or exactly what that verbal contract stated. Since you have no written proof, the company merely has to show up in court and make a plausible argument that there was no agreement and it would be very difficult for you to prevail. And from a damages standpoint, since the company would generally be well within their rights to fire you the day after they hired you, what you could hope to recover is pretty minimal.

Realistically, if they decide to pull the offer, you probably have very limited options. If you left your prior job on good terms, you could potentially approach them to see if they'd take you back. I would definitely restart my job search if you're not comfortable with the position you're in.

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Spot on @Justin-Cave! Verbal/implied offer or not, remember it's 'right to work' so there are no legal commitments either way. – Stephen Dec 12 '12 at 21:32
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@Stephen: I think the phrase you're looking for is "employment at will". "Right to work" relates to union membership. And both vary depending on the jurisdiction. – Keith Thompson Dec 12 '12 at 23:09
@KeithThompson thanks for the clarification. – Stephen Dec 12 '12 at 23:10
Thanks Guys, I am also aware of the "Employment at Will" status in Georgia, so I appreciate the discussion here. – Samantha Dec 13 '12 at 12:17
up vote 0 down vote

I Am Not A Lawyer: A verbal contract is generally as binding as a non verbal contract, with the caveat being who to believe. But that should not be part of your question.

Ignoring the verbal part, your question is what recourse do you have if a job has been offered and accepted, and then one party reneges on the deal.

That depends entirely upon the content of the offer -- does it include non-performance penalties? If not, in the the US, you are pretty much out of luck unless there are unusaul cirumstances such as discrimination or fraud. An employee has no right to a job, and the employer has no right to the time and labor of someone that doesn't want to exchange their effort for recompense.

If it does, or if the offer includes moving expenses or signing bonuses, you may be entitled/obligated even if no actual employment takes place.

The above is generic and applies to both employer and employee, this is directed specifically to you: start looking for another job! You are currently out of work, you do not know how long that will last. Look for another job while you are waiting for the situation to resolve. I am not saying that what you should do if the new company comes through, but rather what you should do in the meantime.

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