Employment Offer Letter

An employment offer letter is a written document from an employer to a new hire that confirms the terms of employment. It spells out job title, pay, benefits, start date, and other key details so both sides know what to expect. Minnesota is an at-will employment state, which means either the employer or the employee can end the working relationship at any time, with or without cause, as long as the reason is not illegal.

When to Use This Template

• Hiring a new employee: You have selected a candidate and want to put the terms of the job in writing before their first day
• Formalizing a verbal offer: You made a spoken offer and want to confirm the details in a written document
• Promoting or transferring an existing employee: An employee is moving to a new role, and you want to document the new title, pay, and responsibilities
• Converting a contractor to employee status: You are bringing an independent contractor on as a W-2 employee and need to document the new employment terms

How to Use This Template

1. Download the template in your preferred format (PDF or DOCX).
2. Fill in the employer’s information. Include the company’s full legal name and address.
3. Fill in the employee’s full legal name.
4. Enter the job title, department, and reporting structure. State who the employee will report to.
5. Set the start date. Include the date, time, and location for the first day.
6. Specify compensation. State salary or hourly wage, pay frequency, and any bonuses or commissions.
7. Summarize benefits. List health insurance, retirement plans, paid time off, and other benefits the employee will receive.
8. Include the at-will statement. Use clear language that the position is at-will and that the letter is not an employment contract.
9. List any contingencies. Note if the offer depends on a background check, drug test, reference check, or I-9 verification.
10. Review the letter against the Minnesota employment law requirements listed below.
11. Send the letter to the new hire and ask them to sign and return a copy by a specified date.
12. Keep a signed copy in the employee’s personnel file.

What to Include

Job Title and Start Date

State the exact job title, the department or team, and the first day of work. Include the time and location where the employee should report on day one.

Compensation

State the salary (annual amount) or hourly wage clearly. Include:

• Pay frequency (weekly, biweekly, semimonthly, or monthly)
• Any signing bonus, performance bonus, or commission structure
• Overtime eligibility (exempt or non-exempt under FLSA and Minnesota law)

Work Schedule and Location

Describe the expected work hours, days of the week, and primary work location. If the position is remote, hybrid, or requires travel, state that clearly.

Benefits Summary

Provide a brief overview of benefits, including:

• Health, dental, and vision insurance
• Retirement plan (401(k), SIMPLE IRA, or other)
• Paid time off (vacation, sick leave, holidays)
• Earned sick and safe time (required by Minnesota law)
• Any other benefits (life insurance, disability, tuition reimbursement)

Note when benefits begin (for example, “health insurance coverage begins on the first of the month following 30 days of employment”).

At-Will Statement

This is the most important legal section of the letter. State clearly that:

• Employment is at-will
• Either party may end the relationship at any time, with or without cause
• The offer letter is not an employment contract and does not guarantee employment for any specific period

Contingencies

List any conditions that must be met before employment begins, such as:

• Satisfactory background check
• Drug testing (must follow Minnesota procedures)
• Completion of Form I-9 (employment eligibility verification)
• Reference or credential verification

Reporting Structure

State who the employee will report to (supervisor’s name and title) and a brief description of the role within the organization.

Minnesota Employment Law Requirements

Wage Payment Timing

Minnesota law requires employers to pay wages at least once every 31 days ( Minn. Stat. § 181.101 ). Commissions must be paid within 3 days of termination or by the next regular pay period, whichever comes first. State the pay frequency clearly in the offer letter.

Wage Disclosure

Under Minn. Stat. § 181.172 , employees have the right to discuss their wages with coworkers. Employers cannot prohibit, discourage, or take action against employees for discussing their pay. Do not include any language in the offer letter that restricts wage discussions.

Earned Sick and Safe Time

Minnesota law ( Minn. Stat. § 181.9445 through Minn. Stat. § 181.9448 ) requires all Minnesota employers to provide earned sick and safe time. Employees earn 1 hour of sick and safe time for every 30 hours worked, up to 48 hours per year. This applies to all employees, including part-time and temporary workers. The offer letter should reference this benefit.

Non-Compete Ban

Minnesota law ( Minn. Stat. § 181.988 ) prohibits most non-compete agreements for employees. Do not include non-compete language in the offer letter. Non-disclosure agreements (NDAs) and non-solicitation agreements may still be permissible, but should be reviewed carefully and presented as separate documents.

Overtime

Minnesota law requires overtime pay at 1.5 times the regular rate for hours worked over 48 in a workweek ( Minn. Stat. § 177.25 ). Federal law (the Fair Labor Standards Act) requires overtime after 40 hours per workweek and supersedes Minnesota law for most employers. State whether the position is exempt or non-exempt from overtime requirements.

Discrimination

The Minnesota Human Rights Act ( Minn. Stat. § 363A.08 ) makes it unlawful to discriminate in employment based on race, color, creed, religion, national origin, sex, gender identity, marital status, familial status, disability, public assistance status, age, sexual orientation, or local human rights commission activity. The offer letter and hiring process must comply with these protections.

Drug Testing

If pre-employment drug testing is required, the employer must follow Minnesota’s drug and alcohol testing procedures ( Minn. Stat. § 181.953 ). The offer letter should state that the offer is contingent on passing a drug test and that testing will follow Minnesota law.

At-Will Language Best Practices

What to Include

Use clear, direct language such as:

• “Your employment with [Company] is at-will.”
• “Either you or [Company] may end the employment relationship at any time, with or without cause or notice.”
• “This letter is not an employment contract and does not guarantee employment for any specific period.”
• “No manager or representative of [Company] has the authority to make any verbal or written promises of continued employment.”

What to Avoid

Certain language can create an implied contract that overrides at-will status. Avoid:

• “Permanent position” – this suggests the job will last indefinitely
• “Job security” – this implies the employee will not be terminated
• “Annual salary of $X” – without clarifying this is the rate of pay, not a guarantee of one year of employment
• Specific termination procedures – listing steps like “verbal warning, written warning, suspension, termination” can be construed as a contractual promise that those steps will always be followed
• “Just cause” language – stating that the employee will only be terminated for cause creates a contractual obligation
• Guaranteed bonus or raise language – use “eligible for” instead of “will receive”

Contingencies

Background Check

If the offer is contingent on a background check, state this clearly. Under Minnesota’s Ban-the-Box law, employers with 20 or more employees may not ask about criminal history on a job application. Criminal background inquiries are permitted only after a candidate has been selected for an interview or, if there is no interview, after a conditional offer has been made.

Drug Testing

Minnesota law ( Minn. Stat. § 181.953 ) sets specific procedures for workplace drug testing. If pre-employment drug testing is required:

• The employer must have a written drug testing policy
• The employee must receive written notice of the testing requirements
• Confirmatory testing must follow an initial positive result
• The employee has the right to explain a positive result

I-9 Verification

Federal law requires all employers to verify the identity and employment eligibility of every person hired. The offer letter should note that the employee must complete Form I-9 and provide acceptable documents within three business days of the start date.

Reference Checks

If the offer depends on satisfactory reference checks, state this clearly. Under Minnesota law, former employers who provide truthful reference information in good faith are generally protected from liability.

Common Mistakes to Avoid

1. Using implied contract language. Words like “permanent,” “job security,” or “guaranteed” can override the at-will relationship and create contractual obligations the employer did not intend.
2. Failing to include an at-will statement. Without a clear at-will statement, an employee may argue the offer letter created an implied contract for a set period of employment.
3. Including non-compete language. Minnesota law prohibits most non-compete agreements for employees. Including non-compete terms in an offer letter is unenforceable and may expose the employer to legal claims.
4. Restricting wage discussions. Minnesota law protects the right of employees to discuss wages. Any language that discourages or prohibits wage discussions violates state law.
5. Being vague about compensation. State the exact salary or hourly rate, pay frequency, and overtime eligibility. Unclear pay terms lead to disputes and potential wage claims.
6. Forgetting earned sick and safe time. All Minnesota employers must provide earned sick and safe time. Failing to mention this benefit does not eliminate the legal requirement, but it can cause confusion.
7. Skipping contingencies. If the offer depends on a background check, drug test, or other condition, failing to state this clearly can create a binding offer before those conditions are met.
8. Not following Ban-the-Box requirements. Asking about criminal history too early in the hiring process violates Minnesota law for employers with 20 or more employees.

Related Resources

Wrongful Termination in Minnesota

• Minnesota Department of Labor and Industry – wage and hour rules, workplace safety, and employer requirements
• U.S. Equal Employment Opportunity Commission (EEOC) – federal employment discrimination laws and filing procedures
• Minnesota Department of Employment and Economic Development – unemployment insurance and workforce programs
• Minnesota Attorney General - Employee Rights – overview of Minnesota employment laws