Excerpted from Washington, D.C. Employment Law Letter; written by the law firm of Krukowski & Costello, S.C. http://www.hrhero.com/dcemp.shtml

When you decide to offer an applicant a job, there are many reasons to consider extending the offer in writing. Offer letters can be used to avoid misunderstandings. They can outline the nature and functions of the position - the terms and conditions of employment.

They also provide your new hires with a sense of certainty and the ability to give their current employers notice. If they''re done carefully, they may assist you in the event of litigation. As with any written document, there are reasons to use them and certain precautions to heed.

Avoiding pitfalls
There''s no legal requirement that you put a job offer in writing. Regardless of whether you convey information to the applicant orally or in writing, you have to be careful about what you say. Always consider that a jury may someday consider these statements.

If you decide to use an offer letter, it''s a good idea to keep it brief, with a simple explanation of salary and benefits. It might also include the following:

• any contingencies, such as a drug test, medical examination, confirmation of eligibility for employment, or signing of a confidentiality or noncompete agreement;

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• the effective date of the offer and the expected start date;

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• where and to whom the employee should report on the first day of work;

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• the title of the position and essential functions of the job (alternatively, you might reference a job description and attach one);

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• the amount the position pays (if you specify a salary, indicate that it''s on an "annualized" basis so that the reference to "annual salary" isn''t construed to mean the individual will be employed for at least a year or on a year-to-year basis); and

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• employment benefits to be provided and any waiting periods before eligibility begins.

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For some of this information, you might reference some other document, such as an employee handbook, benefits booklet, or job description, and provide a copy of the document.

Remember that you want to retain the maximum flexibility to protect yourself in case of a lawsuit if things don''t work out. The following preventive measures are suggested:

• Avoid any verbal or written assurances of employment security, longevity, or what might happen in the future.

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• Avoid statements that qualify or limit the company''s right to terminate an employee.

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• Avoid statements regarding the anticipated duration of employment or what may constitute "cause" for termination.

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• Request that the employee sign an acknowledgment letter stating that she has read the offer letter, understands it, and agrees to its terms.

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If you want the letter to be signed and returned, it''s preferable to require that it be returned to you before work begins. A copy of the letter should be kept in the personnel file.

Bottom line
It''s a good idea to use offer letters so the terms of employment are clear. But draft them with great caution so they aren''t someday used against you in a lawsuit.

Copyright 2002 M. Lee Smith Publishers LLC. This article contributed by *Washington, D.C. Employment Law Letter*. Read more about the print newsletter and its editors at http://www.HRhero.com/dcemp.shtml

This article should not be construed as legal advice or a legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only. Remember to check your state''s laws for more restrictive rules and regulations. For more information on state-specific employment updates written by attorneys in your state, go to: www.hrhero.com/empnl.shtml