Employee Offer Letter Template

A professional offer letter for your first (or next) hire. Covers position, compensation, benefits, at-will status, and contingencies. Part of the How to Hire Your First Employee checklist.

[Your Business Name]

[Your Address]
[City, State ZIP]

[Date]

[Candidate Full Name]
[Candidate Address]
[City, State ZIP]

Dear [Candidate First Name],

We are pleased to offer you the position of [Job Title] at [Company Name]. We believe your skills and experience are an excellent fit for our team, and we're excited to have you join us.

Position Details

Title: [Job Title]

Department: [Department, if applicable]

Reports To: [Manager Name and Title]

Location: [Office address / Remote / Hybrid — specify days]

Start Date: [Date]

Employment Type: [Full-time / Part-time], [Exempt / Non-exempt]

Exempt vs. Non-exempt matters. Exempt employees are salaried and not entitled to overtime. Non-exempt employees must be paid overtime (1.5x) for hours over 40/week. Misclassification triggers back-pay liability. If unsure, default to non-exempt — it's the safer option. The federal salary threshold for exemption is $43,888/year as of 2024.

Compensation

Base Salary: [$XX,XXX] per year, paid [biweekly / semi-monthly] ([$X,XXX.XX] per pay period, before deductions)

— OR for hourly positions —

Hourly Rate: [$XX.XX] per hour, with an expected schedule of [XX] hours per week

Benefits

You will be eligible for the following benefits, subject to plan terms and eligibility requirements:

[Health insurance — describe coverage, employer contribution, eligibility date (e.g., "after 60 days")]

[Paid time off — e.g., "15 days PTO per year, accrued per pay period"]

[Paid holidays — e.g., "10 company holidays per year"]

[Retirement plan — e.g., "SIMPLE IRA with 3% employer match after 90 days"]

[Other benefits — e.g., professional development budget, remote work stipend, etc.]

If you don't offer benefits yet: Remove this section or replace with "Benefits are currently under development and will be communicated as they become available." Don't promise benefits you can't deliver.

At-Will Employment

Your employment with [Company Name] is "at-will." This means that either you or the Company may terminate the employment relationship at any time, for any reason, with or without cause or notice. This offer letter does not constitute an employment contract for any specific period of time.

At-will is critical. This clause preserves your right to terminate employment if things don't work out. Without it, an employee could argue the offer letter created an implied contract. Montana is the only state that is not at-will by default.

Contingencies

This offer is contingent upon:

→ Successful completion of a background check [if applicable — delete if not]

→ Verification of your legal right to work in the United States (I-9 documentation)

[Signing a non-disclosure agreement / non-compete agreement — if applicable]

[Any other contingencies — drug screening, reference check, license verification]

Confidentiality

During your employment, you may have access to confidential business information. You agree to maintain the confidentiality of all proprietary information during and after your employment. [A separate Non-Disclosure Agreement will be provided for your signature on or before your start date. / Delete if not applicable.]

Acceptance

To accept this offer, please sign and return this letter by [Date — typically 5-7 business days]. If you have any questions, please don't hesitate to contact [Contact Name] at [Email / Phone].

We look forward to welcoming you to the team.

Sincerely,

________________________
[Your Name]
[Your Title]
[Company Name]

ACCEPTANCE

I, [Candidate Name], accept the offer of employment as described above. I understand that my employment is at-will and that this letter does not constitute a contract for a specific term of employment.

Signature: ________________________
Date: [Date]

Disclaimer: This template is for informational and educational purposes only. It is not legal advice. Employment law varies by state. Have a qualified attorney review your offer letter, especially regarding at-will language, non-compete clauses, and benefit descriptions.