Written Employment Offer Retracted ... Any Cause for Action?

[jabdulius]

What is the name of your state (only U.S. law)? CA

I've encountered a crappy situation and am wondering if there's any cause for action. Basically what happened was I interviewed with Company B. On 10/2, they made me a verbal offer for employment. On 10/4, I accepted the verbal offer for employment and put in my two weeks with my current employer. After I accepted the verbal offer, they sent me a written offer for employment on 10/4. After I had reviewed it, but before signing it and sending it back, they told me to hold off on reviewing or signing until further notice. Inside the offer was a clause that said the offer expired at COB 10/5 so I returned the executed offer letter to them on 10/5 before COB. After I returned the executed offer letter to them, they told me the they were not currently in a position to move forward with my offer or employment.

It sucks for me because now I have to either go beg for my old job back from my current employer or find a new job in the next week to avoid unemployment. From what I've read, there are some mixed opinions. It seems the majority of people think there's no cause for action since California is an at-will employment state and they could have just hired me and then fired me on the first day anyway. Others have said I could sue for "detrimental reliance," meaning I relied on Company B to my detriment and they should compensate me for this.

Opinions?

 

[ecmst12]

Ask if you can retract your resignation notice from your current employer. If they allow you to do so, then you have no damages and nothing to sue for. If they do NOT allow you to stay at your current job, and you end up unemployed for a time, you might have some damages that you can sue for, but it would cost you for the attorney.

 

[cbg]

A great deal is going to depend on WHY they retracted the offer. If, on 10-4, they suddenly lost a major source of funding (for example) or a contract which would have been the major source of your duties was withdrawn, it is unlikely that they will be found liable for anything.

If the person who extended the offer was not authorized to do so, on the other hand, that might work out differently in your favor.

I do agree that you should ask about getting your old job back first.

 

[jabdulius]

Thanks guys!

I'm thinking about asking my current employer if I can keep my job. It just feels so awkward though. If I do stay, my current employer will know that I've looked elsewhere and it undermines my respect.

 

[BigMouthWino]

Thanks guys!

I'm thinking about asking my current employer if I can keep my job. It just feels so awkward though. If I do stay, my current employer will know that I've looked elsewhere and it undermines my respect.

If you leave without determining whether or not you are allowed to stay you certainly will have no damages. I would be very interested in the content of this offer letter. Very rarely is an offer letter written to be binding on the employer in any way. Offer letters usually contain more loopholes for the employer than tricks a monkey can do on a hundred yards of grapevine.