Why this matters
A verbal offer is a misunderstanding waiting to happen. Pay, schedule, and start date discussed on a phone call get remembered differently by two excited people, and disputes about what was promised poison the relationship from day one. Some states also legally require written pay details at hire.
What "done" looks like
- A one-to-two page letter with pay rate, pay frequency, schedule, start date, and title
- At-will status, contingencies (work authorization, background check), and any state-required wage notice covered
- A signed copy returned before day one
How to do it
- State the concrete terms: job title, pay rate and pay schedule, expected hours, start date, location, and who they report to.
- Note exempt or nonexempt status — most first hires are nonexempt and overtime-eligible.
- Include at-will language (employment can end at any time, by either party) and avoid wording that implies a guaranteed term.
- Make contingencies explicit: proof of work authorization (I-9), plus reference or background checks if you run them.
- Cover benefits honestly — PTO, any insurance, or a plain statement that there are none yet.
- Check your state's notice rules, then get the letter signed and returned before the start date.
Common mistakes
- Quoting an annual salary with language that reads like a one-year promise.
- Making verbal side promises ("we'll revisit pay in three months") that never make it into writing.
- Letting the candidate start before anything is signed.
Real-world examples
- Montana is the only US state without default at-will employment, which is why at-will language appears in virtually every American offer letter.
- New York's Wage Theft Prevention Act requires a written notice of pay rate and payday for every new hire; California has a similar hiring-notice requirement for nonexempt employees.
From a founder's point of view
The offer letter isn't bureaucracy — it's the first test of whether you and the hire agree on reality. If writing the terms down feels awkward, the terms were vague — and vague terms resolve against the employer later.
Rule of thumb
If a term matters enough to say out loud, it goes in the letter. Signed before the first shift, no exceptions.