CDA Employment Practices Analyst Michelle Coker takes calls from member-dentists every day she is in the office. Many of those conversations end with the dentist understanding applicable employment law or how to use a CDA form, sample policy or other resource to fulfill a task or responsibility.
But, occasionally, as with recent calls about rescinding a job offer, a call ends with Coker referring the dentist to an attorney because, as she puts it, “the circumstances are serious enough.”
“In California, once a verbal or written offer of employment has been made or accepted, withdrawing it can create legal risk for the employer depending on the circumstances,” Coker said. “The legal risk is greater if a start date has been established or the candidate has relied on the offer, turned down other job offers or resigned from another position.”
Asked if calls about rescinded job offers share a common theme, Coker did not hesitate to reply. “Rescinding an offer is often the result of a poor hiring process,” she said.
Three examples highlight poor hiring process
Coker said too often dentists have hired in haste or skipped steps in absence of a well-planned, structured hiring process. “Employers’ due diligence in hiring includes conducting reference checks, background screenings and candidate evaluations before extending an offer,” she said.
The following three scenarios illustrate how a practice owner’s deficient hiring process resulted not only in a regrettable offer or hire but also the consideration of a risky rescindment.
- The employer received poor reference information for the employee after extending the offer and establishing the start date.
- The employer used a working interview to “try out” a candidate as part of the hiring process.
- The employer found a more desirable candidate after hiring.
Coker shares advice to help dentists avoid risky scenarios.
“Rescinding an offer for a more desirable candidate points to a poor hiring process, but it can also damage the employer’s reputation,” Coker said. “Word gets around especially fast today with many opportunities for individuals to detail their experience publicly through online reviews or on websites like LinkedIn.”
“If the reference check is important to your hiring decision, you should either complete it before extending a final offer or the offer should ideally be in writing and clearly state that employment is contingent upon receipt of satisfactory references,” she said.
Working interviews can pose specific risks
Working interviews used inappropriately can be especially problematic. Although employers can use working interviews effectively to assess skills, Coker says they should not be used to determine whether the employer likes the candidate enough to hire them. Doing so can mean noncompliance with employment laws, documentation requirements and pay obligations in California because once an individual performs work for a practice, the state recognizes that individual as an employee.
CDA analysts have learned of situations where candidates have reached the end of their working interview and received an employment start date. That sounds like a positive outcome for both the employer and employee, so what is missing in the scenario? “It becomes a problem when the employer never provided a clear end date for the assigned working interview and an established employment start date,” Coker said.
“Without the clear end to the working interview, the employee may consider themselves an employee already, which creates risk should the employer change the terms.”
As a best practice, when the assigned working day ends, the employer should inform the candidate that they’ll contact them with a decision. “Take the time to consider the candidate and verify you have all you need to make an informed hiring decision before committing,” Coker said.
Yes, it is sometimes OK to rescind an offer
Employers can rescind a job offer in some circumstances. For example, if they make an offer with a start date, but the candidate changes their available start date or for some reason cannot start on the offer’s start date, the employer can withdraw the offer.
Still, Coker says the best way to avoid poor hiring choices is to slow down and follow a strategic hiring process, even when finding good candidates is difficult. “A thoughtful hiring process is far less risky than trying to undo a poor hiring decision.”
New-hire toolkit and more for members
Three CDA resources can help members implement a structured hiring process and lower the risk of rescinding offers:
- General New Hire Toolkit (includes sample offer letters)
- Recruiting and Hiring Checklist
- Working Interviews in a Dental Practice (includes sample working interview letter)