Job Offers May be Rescinded Under At-Will Doctrine

The Connecticut Appellate Court affirmed a lower court ruling that found the at-will doctrine applies to prospective employees whose offer of employment is withdrawn before their first day of work. Petitte v. DSL.NET, Inc., 102 Conn. App. 363 (2007). Plaintiff received an offer of at-will employment from DSL. He accepted the job and gave notice to his former employer. When plaintiff reported for his first day of work at DSL he was immediately sent home. Later that evening he was told the company was withdrawing its offer based on negative references obtained after the offer was made. Plaintiff then filed breach of contract, negligent misrepresentation, and emotional distress claims.

The at-will doctrine permits either party to terminate the employment relationship at any time, for any reason, or no reason at all, with or without notice, provided the termination is not unlawful or in violation of public policy. Here the court rejected plaintiff’s argument that the at-will doctrine did not apply because the employment relationship had not yet commenced when the decision to rescind the offer was made. The court found it immaterial that the employer exercised its right to end the employment relationship before it actually began. The court noted that to rule otherwise would give prospective employees more rights than those who began work. It would also require employers who have decided to rescind an offer, to permit an individual to commence work in order for the employer to invoke its at-will termination right.

The court also rejected plaintiff’s claim of negligent misrepresentation, which requires one to show justifiable reliance on false information supplied by another that results in pecuniary loss. In this case the court found the clear at-will language in the offer letter put plaintiff on notice that he was not being offered guaranteed employment, and that he could be terminated at any time.

While the decision affirms that the at-will doctrine applies equally to offers of employment, it is critical that any offer contain clear at-will language reserving the employer’s right to terminate the relationship at any time. Such language will also protect employers from misrepresentation claims.