Employment offer letters are not heavily regulated at the federal level, but several states have rules that directly affect what an offer letter must or should include.
Pay transparency. California, Colorado, New York, Washington, and a growing number of other states require employers to disclose a salary range in job postings and, in some cases, in the offer itself. Failing to include a range where required can expose the employer to compliance risk.
At-will exceptions. Every state except Montana follows at-will employment by default. Montana law generally requires cause for termination after a probationary period, so offer letters for Montana-based employees should not include standard at-will language without legal review.
Non-compete disclosure. Several states, including California, Minnesota, and Oklahoma, prohibit most non-compete agreements entirely. Others, such as Illinois and Colorado, require advance written notice before asking a candidate to sign a non-compete. If the offer references any post-employment restrictions, confirm they are enforceable in the candidate's state.
Commission plan disclosure. California requires employers to provide a written commission agreement before a commissioned employee begins work. An offer letter alone does not satisfy this requirement.
Offer letter requirements change as states update their employment laws. Employers hiring across multiple states should review applicable rules for each work location before sending an offer.