Steps on How to Write an Offer of Employment Letter in USA

An offer of employment is a formal letter that contains information about your current and future job responsibilities, salary details, benefits offered, and any other relevant information. An offer letter is meant to introduce you to your potential employer so he or she can decide whether or not to hire you for the position. You should always include this type of information in your application packet because it helps prospective employers understand what makes you a good candidate for the position they are offering.

Steps on How to Write an Offer of Employment Letter in USA

When you're ready to hire your next employee, it's important to set expectations early on. A well-written offer letter can help you avoid disputes and ensure that everyone is on the same page. Here are some tips for writing a strong offer letter:

About Employment Letter

The offer of employment letter is a formal written statement of employment. It outlines the terms and conditions of your new job, including salary, benefits and other perks. An offer letter is required for all employees, including part-time and temporary employees.

If you have multiple jobs or positions within an organization that require different levels of skill sets or qualifications (e.g., a receptionist who also cleans floors), then each position should have its own offer letter with specific requirements outlined therein.

What exactly is an offer letter?

It's time to send an offer letter after making an initial verbal offer to your top candidate. An offer letter is typically sent prior to contingencies such as a background check, but before signing an official employment contract:

  • Normally, a position is offered to a job applicant.
  • The main terms and conditions of the offer are summarized.
  • Provides information about the role and the company to assist a candidate in deciding whether or not to accept the offer.

If the candidate accepts your offer, they will sign and return the letter to you. It is important to note, however, that an offer letter is not always a legally binding employment agreement. This is usually a separate document that provides both parties with detailed legal protection. Even so, having a legal professional review your offer letter before sending it to a potential employee is a good idea.


Step 1: Opening and Basic Information

The first thing you should do is to write down the date of employment, employee name and employer name. You can also include other basic information like address, phone number and contact information for both parties involved in this job offer letter.

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You may also want to provide a link where people can visit your website or view more about what it means for them if they accept your offer of employment. This will help make sure that people are aware of who you are and what kind of work environment they would be working in if they accept your offer!

Step 2: Job-Specific Information

This section of your letter should include the job title, location and duration of employment. It is also important to include information about your company’s benefits package and how these will be applied toward your salary.

Step 3: Benefits Information

You can include the benefits of your position in an offer letter. Benefits are not just for employees, but for employers as well! If you're hiring someone to work for you, it's important that they have access to all sorts of perks and benefits so that they feel comfortable and happy working for you.

Benefits could include health insurance, retirement plans, 401k plans and other perks like company discounts on products or services.

Step 4: Paid Leave Information

Include the number of paid sick days, personal days and bereavement leave. If you are a salaried employee, include the amount of your salary per month. For example: “I am requesting $300 per month as my salary as an employee at company X.”

Step 5: Terms of Employment

  • Employment terms. This section should include the period of time for which your offer is valid and any other terms that are relevant, such as start date and end date.

  • Pay rate and salary information. In this section you should include any details about how much money you will make per hour or week, as well as how often that rate changes (for example, if it's based on performance). You may also want to include benefits packages associated with working at our company, such as health insurance coverage or paid vacation time accrued over time spent working there (e.g., one week every three months).

Step 6: At-Will Employment

This is the most common type of employment. An employer can terminate your at-will employment for any reason or no reason at all, so long as you’re in the wrong and there are no mitigating factors.

Theoretically, employers have an unlimited number of reasons for terminating an employee. However, these reasons must be reasonable and based on facts that relate to past performance or employment practices (i.e., not just making up something that doesn't exist).

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If they want to fire you because you were late one day or drank too much alcohol at a party once upon a time—or even if they don't—they must provide evidence backing up their claims with facts instead of speculation about how much time/money/etc was wasted due to your mistake(s).

Step 7: Closing

Once you’ve finished writing the letter, it is time to sign it and date it. You can also include additional material if you would like—for example, if your company has a standard cover letter template that they send out with each application, include this in your offer of employment letter as well.

Finally, make sure to include everything that should be included in an employment offer letter:

  • A signature block (i.e., “Signed”)
  • Date when sent or received by recipient(s)
  • Letterhead

Step 8: Legal Review

  • Make sure you have the right to write the letter.
  • Make sure that your letter is free of errors and accurate.
  • Make sure it's relevant to the job or position you're applying for, so that it will be seen as a strong application rather than just "a letter."


Scenario 1:

An employer chose a suitable candidate after a lengthy interview process. The candidate was verbally offered the position by the employer, who then followed up with an offer letter. The candidate accepted the position and signed the offer letter, which stated that the company was financially sound and that the candidate "would have job security with the company even during these tough economic times."

The employee was informed about two months after his hire that the company would have to lay him off as part of a force reduction. The employee sought legal counsel immediately because the offer letter stated that there would be job security but did not include an at-will clause. Although the suit was costly for the company, it taught the employer a valuable lesson in how to write an offer letter that does not constitute an implied contract.

Scenario 2:

After a candidate accepted an oral job offer, an offer letter was written. The letter confirmed an annual salary amount acceptable to the candidate, who then signed and returned it to the employer. Six months into the job, the employer determined that the employee was not a good fit and decided to fire her. The employment was at will, but there was no mention of this in the offer letter.

Furthermore, the letter only mentioned the annual salary, implying that the job was only for a year. As a result, unless the employer decided to pay out the remainder of the annual salary, the employer could not terminate the employee due to the implied duration of employment. This company no longer includes annual salary amounts in its offer letters, but instead quotes pay on an hourly, weekly, or monthly basis.


It is important to note that all laws and regulations regarding employment should be followed. The above steps are only a guide, so always contact your legal counsel for more information about your specific situation.

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