Answers / Employment
EMPLOYMENT

What should I check in a job offer letter before accepting?

SHORT ANSWER

Verify compensation details (base, bonus terms, equity), the at-will language, contingencies (background check, references), and what’s NOT in writing — verbal promises about role or raises usually don’t survive.

An offer letter looks like a formality; it’s the document your employment actually rests on. Check the compensation mechanics: base salary, how bonuses are earned (discretionary vs. formula — "discretionary" means they can pay zero), equity specifics (type, amount, vesting — or is it just "eligibility"?). Note the at-will statement — standard, but it means the "permanent position" language elsewhere is decorative. Watch contingencies: offers conditioned on background checks or references aren’t final. And apply the merger-clause logic: verbal promises about title trajectory, remote work, or review timing that aren’t written down are, practically, not promises. Get what matters into the letter before signing.

What to do, in order

  1. Verify base pay, bonus terms, and whether bonuses are discretionary.
  2. Pin down equity: type, amount, vesting schedule — in writing.
  3. Note contingencies (background check, references) before resigning elsewhere.
  4. Get verbal promises (remote work, title, review timing) added in writing.
  5. Check for attached agreements: non-compete, arbitration, IP assignment.

Common questions

Is an offer letter a contract?

It’s usually not an employment contract — most include at-will language preserving the employer’s right to change terms. But its written terms are what you can hold them to.

Can a job offer be withdrawn after I accept?

At-will employment generally allows withdrawal, painful as that is. Contingent offers (background checks pending) carry extra risk — don’t resign until contingencies clear.

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Main AI explains documents and general legal rights in clear terms. It is not a law firm and does not provide legal advice. Laws vary by state and change over time — verify specifics for your jurisdiction, and consult a licensed professional for advice on your situation.