Original post date: February 2019
A job offer letter should be an exciting opportunity for your organization and the applicant receiving the offer letter. I have seen personalized offer letters for jobs and the standard letters used by many organizations. Regardless of the process or letter your organization utilizes, ensure your offer letter is legal, professional and easy to understand.
Below are my 8 thoughts on job offer letters:
- Professional Heading: Ensure your organizations logo is at the top of the page, along with the date and the individuals contact information. The letter should start with an introductory sentence, pleased to offer you a position.
- Summary of Employment Offer: The summary of employment offer should include; position title, hire/start date, reporting manager, hourly or salary rate, overtime if eligible, salary grade, vacation policy or number of weeks (is it prorated?), health insurance eligibility, retirement savings plan, etc.
New York State Specific Information on Include:
- ““Rate or rates of pay, including overtime rate of pay (if it applies)
- How the employee is paid: by the hour, shift, day, week, commission, etc.
- Regular payday
- Official name of the employer and any other names used for business (DBA)
- Address and phone number of the employer’s main office or principal location
- Allowances taken as part of the minimum wage (tips, meal and lodging deductions)”[i]
- Under the New York Wage Theft Protection Act, employers are also required to maintain 6 years of acknowledgements confirming receipt of notification of wages and other information required to be provided by employers under the law.
- Bonus Information: Organizations may provide their own notice, as long as it includes all of the required information. (Offer letter or wage change letter) Must include signatures.”[ii]
3. Restrictions, Restrictive Covenants or Noncompete: Another area to consider, especially if there is intellectual property and other proprietary information. These are not always legal in New York State and/or other states or localities, more information on these in future articles. Know your state and local laws prior to drafting this language.
4. References & Background Checks: If you do conduct reference and background checks, ensure to include language about the offer being contingent upon a successful reference or background check.
5. Preemployment Testing: Similar language here, regarding any preemployment drug testing or additional testing required prior to moving forward in the offer letter process. Remember the offer is contingent upon…
6. Form I-9 or E-Verify: Proof of your identity and employment authorization, as required by the U.S. Department of Justice and the Immigration and Naturalization Act.
7. “At Will” and Additional Language: “Your employment with us will be on an “at will” basis, which means that either you or the organization may terminate your employment at any time for any reason, with or without cause. No employee of the organization has authority to alter your at will employment relationship. Although the Organization does not have any current plans to change its benefits or compensation or programs, it reserves the right to change or terminate these benefits, programs and plans at any time.”
8. Closing the Offer: Close the offer with language that is exciting and promoting the unique opportunity to join the organization. Remember, this is a first impression. Ensure there is contact information listed on the offer letter for the HR rep or manager of the department. Include an area on the offer letter for the candidate to accept and sign. Include any policy information, benefit or retirement information so the candidate has all necessary information to make an informed and efficient decision. Include a response date if you feel it is appropriate, I do not see the value with exploding or expiring offers. However, we do need an answer yes or no so we can move the organization forward. My recommendation is to send a signed PDF copy to the applicant and the original in a Fed-Ex, UPS or USPS overnight envelope.
Every organization will have a different template or process for offer letters. Some require an approval process prior to making or drafting an offer letter and required salary, vacation and other perks. Other organizations have very legal and rigid offer letters. No matter what format your organization utilizes for offer letters, remember one thing, treat the candidate/applicant how you want to be treated during the recruitment process. The way we treat candidates can and will have an impact on if the offer is accepted or rejected and reputation follows any organization.
Another area to remember in New York State, with any wage increase (or decrease), promotion, status change, the state requires us to provide the wage notification form. Organizations can use the state forms or draft the letter template with required information, my preference is a letter that spells out the state requirements, which also contains “at will” employment language.
Suffolk County Bans Pay History Questions
“Suffolk County, New York has passed a law making it unlawful for employers and employment agencies with four or more employees to inquire about a job applicant’s salary history or otherwise to rely on such information in setting a new employee’s compensation. Entitled A Local Law to Restrict Information Regarding Salary and Earnings (“RISE Act”), this new law is designed to “help break the cycle of wage discrimination and close the wage gap” for statistically underpaid individuals, such as women and racial and ethnic minorities. This is similar to measures that have already been enacted in New York City, Westchester County, and Albany County. It will go into effect on June 30, 2019.”[iii] Monitor for New York State legislation on pay history questions in 2019.
[ii] “7 Notice of Pay Rate Requirements in New York State,” Burr Consulting, LLC Article, July 2, 2018