The offer letter turns a verbal yes into a clear, written agreement on the basics. Getting the details right prevents misunderstandings later.
| Offer letter | Employment contract | |
|---|---|---|
| Purpose | Confirms the basics of the job offer | Sets binding terms for the relationship |
| Length | One to two pages | Often longer |
| Term | Usually at-will (no fixed term) | May set a fixed term or termination conditions |
| Typical use | Most hourly and salaried roles | Executives, specialized roles, some industries |
Even a simple letter can create obligations if it promises things like guaranteed employment for a period. Choose words carefully.
EZTime digital HR forms let you send, sign and file employee documents online.
| Item | Notes |
|---|---|
| Job title | Match the job description |
| Start date, time and location | Include where to report on day one |
| Manager | Name and title of the supervisor |
| Status | Full-time or part-time; temporary or seasonal if applicable |
| Classification | Exempt or non-exempt; non-exempt employees are eligible for overtime |
| Pay | Hourly rate or salary, pay frequency, tips, shift differentials, commission or bonus terms (with conditions) |
| Schedule or hours | Expected hours or typical shifts, without promising specific shifts unless you mean to |
| Benefits | Key benefits and when eligibility starts; refer to plan documents for details |
| PTO and sick leave | Accrual or policy summary, consistent with state and local law |
| Contingencies | Background check, drug test, license verification, I-9 documents |
| At-will statement | Where applicable |
| Other agreements | Confidentiality or other agreements required, as allowed by state law |
| Response deadline | When and how to accept |
| Signature lines | For the employer and the candidate |
In most US states, employment is “at will,” meaning either the employer or employee can end the relationship at any time for any lawful reason. Many offer letters include a statement such as: “Your employment with [Company] is at will. This means either you or the company may end the employment relationship at any time, with or without cause or notice.” Montana is a notable exception, with a law that limits at-will termination after a probationary period. Avoid phrases like “permanent position” or “guaranteed employment” that could undermine at-will status.
| Hourly (non-exempt) | Salaried exempt | |
|---|---|---|
| Pay statement | “$XX.XX per hour” | “$XX,XXX per year, paid [frequency]” |
| Overtime | “Eligible for overtime at 1.5 times your regular rate for hours over 40 in a workweek” (plus any state rules) | Not eligible, if the role meets an exemption |
| Schedule | Typical shifts or hours; note that schedules vary if they do | Expected general hours |
| Time tracking | Explain how to clock in and out | May not track hours, depending on policy |
| Tips | For tipped roles, describe how tips and any tip pool work, and any tip credit with required notices | Not applicable |
If you take a tip credit, federal law requires you to inform tipped employees of specific information in advance. See restaurant payroll basics.
Adapt this outline and have an attorney review your final version:
Some states require employers to give new hires a written notice of their pay rate, pay day, overtime rate, employer details and other information at the time of hire, sometimes in the employee’s primary language and with a signed acknowledgment. An offer letter may not satisfy these rules on its own. Check your state labor department’s requirements and keep signed notices in the employee file. Your personnel file should hold the offer letter, any wage notice and new hire forms.
Many employers make a verbal offer first, then send the written letter the same day. For hourly roles, speed matters: good candidates often accept the first solid offer. Give a reasonable response window, such as two to five days, and be ready to answer questions about schedule and pay. If you rescind an offer, be careful: depending on the reason and state law, rescinding can create legal risk.
An offer letter can create legal obligations depending on its wording. Most are written to confirm the basics of at-will employment rather than create a fixed-term contract. Avoid guarantees you do not intend, and have an attorney review your template.
Job title, start date, manager, status, classification, pay, schedule or hours, benefits, contingencies, at-will statement where applicable, response deadline and signature lines.
Many employers include it where applicable. Montana limits at-will employment after a probationary period, so letters there need different language.
Yes, but follow the Fair Credit Reporting Act if you use a background check company, plus any state and local fair chance laws on when and how criminal history can be considered.
It is often possible, but it can create legal risk if the reason is discriminatory or retaliatory, or if the candidate relied on the offer, such as by quitting another job. Consult legal counsel.
It is not usually legally required, but it is good practice, and some states require written notice of pay rate and other details at hire.
Two to five business days is common for most roles. For hourly roles in a competitive market, shorter windows are typical because candidates often decide quickly.
EZTime’s digital HR forms collect e-signatures and keep the signed copy in the employee’s digital file, with reminders before a document expires.