By the Principles for Ethical Professional Practice Committee

Summary

The following case study describes the role of the career center when a student’s job offer is rescinded right before graduation. The student has come to the career center for assistance as the student withdrew from further consideration with other companies when the offer was originally accepted.

Principles 1, 2 , and 4 of the Principles for Ethical Professional Practice are used to address this scenario. This case study provides insight on the following:

• The role of career centers with respect to rescinded offers.
• Potential actions that can be taken on behalf of the student.
• Implications for the employer given the employer’s actions.
• Considerations for alumni services.
• Potential legal implications.

The Case

Scenario: The career center was informed by a graduating student that A Incorporated revoked an employment offer a month prior to the student's start date with the company.

The student was told that A Inc.’s personnel needs for the coming year were overestimated and the company no longer had a position for the student. The student,  in good faith reliance on the offer, withdrew from further consideration with other companies. Now that the semester is nearly over, they no longer have access to companies recruiting on campus. While the student considers it of little consolation, A Inc. has offered to send the student's resume to other employers that are hiring and provide them with a good reference.

Questions:

• Which of Principles for Ethical Professional Practice are relevant to this situation?
• In what way can the career center be of assistance to the new graduate?
• If office policies restricting alumni access to career services exist, should they be suspended to help this student?
• What follow-up, if any, should the career center director (CCD) consider with the employer?
• Would understanding why the hiring needs were overestimated help?
• What criteria did the employer use to decide which offers would be rescinded?
• What is the potential impact that this decision could have on the company’s reputation on campus?

Principles That Apply:

• Principle 1: Practice reasonable, responsible, and transparent behavior by clearly articulating and widely disseminating the organization’s policies and guidelines when resolving differences and addressing concerns.
  • To what degree was A Inc. transparent in providing reasons for withdrawing the accepted offer? Was the offer of referring the student's resume to employers and providing a good reference sufficient to be considered an acceptable response
• Principle 2: Act without bias when advising, servicing, interviewing, or making employment decisions.
  • Pursuit of more information from the employer as to the criteria it used to rescind offers may reveal whether or not this principle was violated.
• Principle 4: Comply with laws.
  • Has A Inc. violated any laws, including ,but not limited to, EEO compliance, unlawful discrimination, and state law claims, e.g., breach of contract or detrimental reliance?

Analysis: With this situation being communicated by the student, it may be wise to pursue more information about this situation from the student first.

Ask the student to share any communications that were had with A Inc., including, but not limited to, any verbal or written offer letters and/or contracts, employment agreements, emails, or other documentation regarding the initial offer and agreement of employment.

Additionally, ask that the student share any information that was provided by the company when rescinding the offer. If this was done via an email notification, then ask that the email be shared with you. If it were done through a conversation, ascertain what A Inc.’s representative told the student. Was there any further detail offered relating to the company’s overestimate of positions needed? Were there any other considerations beyond the offer of referring the student's resume and providing a good reference? On what would the reference be based? Was the student previously an intern or co-op student with A Inc.?

Also ask the student what communication or interactions occurred with A Inc. and the student between the time of the offer and the time the offer was rescinded. Letting the student know that you will pursue a similar line of questioning with the employer may help motivate the student to be as precise as they can be in articulating to you the communications they had with A Inc. These follow-ups are important to helping students navigate these situations in the hiring process. Career professionals should dedicate efforts to supporting student decisions and planning through advising and programming.

For its part, A Inc. may not have considered the significant impact the offer withdrawal could have on its campus reputation. With so many students frequently connecting to their friends and classmates through social media, a student perceiving mistreatment by a company could spread very quickly within the student's campus network. In addition, faculty members may also form a negative opinion of A Inc. based on this decision and how and why it was made. As a result, restoring A Inc.’s reputation on campus could take several years. Many CCDs consider it an important professional obligation to fully brief employers on the potential consequences of their job offer withdrawal decision on campus relations.

Employers should also be mindful of the potential legal claims that can arise as a result of rescinding a job offer, and whether the decision complies with local, federal, and state laws. In this regard, employers should be able to articulate how and why they made the decision to rescind that particular student’s job offer. To avoid liability, the employer will need to establish that the decision was based solely on legitimate, nondiscriminatory considerations. Is this the first instance of A Inc. rescinding offers or could a recurring pattern of withdrawals indicate challenges within the company’s recruitment process that should be addressed? Thus, a reconciliation process is also recommended with the employer to restore reputation among the campus community and to continue a healthy relationship.

In relation to Principle 4, most employers are covered by state and federal EEO laws, statutes, and regulations that prohibit discrimination in in employment based on protected classifications. Rescinding a job offer can constitute an adverse employment action and create potential discrimination liability. Additionally, depending on the nature of the offer and acceptance, the employer could face potential breach of contract liability. In this regard, employers should also review any offer letters, employment agreements, or other written documents that pertain to the student’s employment. Was anything “guaranteed,” such as a sign-on bonus? Even if the offer was properly rescinded, the language used in any written documentation can give rise to a claim for breach of contract if any benefit was guaranteed by the employer to the student. 

Finally, while it may be a difficult case to make for the student, a potential claim for detrimental reliance may be brought against the employer. For example, if a student moved and purchased a home or rented an apartment in reliance on the offer, the student may seek reimbursement for the costs associated with such acts. While this is a potential claim, it is difficult to establish because most positions are “at-will,” meaning that both the employer and employee could terminate the employment relationship at any time, with or without cause and with or without notice. 

Options for Resolution: Gaining an understanding of the consequences that the student faces may determine what action needs to be taken on the student's behalf.

Although this student withdrew from further consideration with other companies, it is possible that if the student reconnected with those companies and explained the circumstances, one or two may have the hiring flexibility to reconsider the student for employment. If that option is not available, extending career center services to the student beyond their graduation may be helpful to them. Many career centers extend services to recent graduates for a set period of time, so perhaps no changes to guidelines or policies would need to be considered.

Is there an impact that the CCD can have on the company decision? Had the company contacted the CCD in advance about the circumstances prompting the withdrawal, the CCD could have had an impact on the decision-making. If notified after the fact by the student and not the company, however, the chances for such a change in an employer’s decision-making is much more remote.

Nevertheless, the CCD’s effort to assist the student affected by this decision may yield positive results. For example, the company could decide to provide compensation to the student, handle the student’s expenses associated with making a planned move to the company site, or consider the student for other positions and geographical locations within the company or affiliated subsidiaries if that action has not already been offered. Given the circumstances, the CCD also should recommend the student seek independent legal advice, particularly if the student incurred financial costs and commitments or signed any contracts or employment agreements.

Ultimately, efforts that lead the student to believe that A Inc. treated them fairly given the circumstances will reduce the likelihood that the company’s reputation on campus will be impugned.

Other Considerations: If a policy exists that the career center does not extend its services fully to graduates, to what degree can the career center be helpful to students within the bounds of Principle 2—acting without bias—when providing advice?

In addition, CCDs should remind employers to consider the situation of certain student populations, such as international students, and continue to educate employers on the value of all student candidates. CCDs could also direct employers to campus or community resources for additional support for international students.

Companies could consider creative solutions, such as offering outplacement services through the CCD, geographical alternatives within the organization, delaying the candidate’s start date for a more favorable future point for onboarding, or offering a significant percentage of salary to work for a charity of their choice until their full-time appointment can begin. (Note: To the extent an employer decides to implement one of these alternatives, it is recommended that they seek the advice of their legal counsel to ensure that they are complying with all state, federal, and local laws.)

Reviewed and revised by the 2024-25 Principles for Ethical Professional Practice Committee.