Legal Question in Employment Law in New Jersey

How binding is an offer letter?

I have been employed for a company for 4+ months in a full-time, salaried position (no contract).

As part of my offer letter it was indicated that there would be a

''...a 90-day evaluation period. Upon the ending of this period, [we] will be in the position to offer a full benefits package, salary review, bonus and stock options.''

After three months I followed up verbally with several principals of the company re: instantiating the terms of the offer with no response (I was basically brushed off).

Recently, with no notice, I have been made a ''freelance'' employee: I won't be called until there's work. I consider this a termination or layoff since I don't expect any work to be forthcoming (due to the instability of the company).

I wasn't offered a severance package of any kind. Implicit in the offer letter is a paid vacation ('full benefits package'), but this was never explicated because the company never followed up on the terms of the offer letter after 90 days.

Based on the offer letter, am I owed any pay for unused vacation time and, more generally, is there any legal issue with not explicating the benefits package as per the offer letter.


Asked on 12/19/01, 10:13 am

1 Answer from Attorneys

Evan Levow Lutz, Levow & Costello, P.A.

Re: How binding is an offer letter?

Based on what you have to written, without more, it doesn't appear you have a viable cause of action. Absent illegal discrimination which was not mentioned, and absent any consideration you gave the company (which you could argue forms a contract) it doesn't sound like there is anything there.

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Answered on 12/26/01, 12:46 pm


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