Contingent Job Offer

How a contingent offer works

The employer makes an offer (verbal, then written) that lists the conditions the candidate must meet. The candidate accepts, completes the required steps, and the offer becomes final when every condition is cleared. If a condition is not met, the employer can withdraw the offer, following any legally required process.

A typical sequence for an hourly role:

1. Final interview and decision.
2. Written conditional offer sent within 24 hours, listing the conditions.
3. Candidate signs the offer and the background check authorization.
4. Background check and drug test run in parallel, usually 2 to 5 business days.
5. Offer confirmed as final, start date set.
6. Form I-9 completed by the first day of work (Section 2 within three business days of starting).

Use our conditional offer letter template for the written offer, which spells out each condition and what happens if it is not met.

Common conditions

• Satisfactory criminal background check
• Drug and alcohol screening (where lawful)
• Reference checks
• Verification of education, licenses or certifications
• Motor vehicle record check for driving roles
• Post-offer medical exam or physical capability test
• Signing required agreements (confidentiality, arbitration, where lawful)
• Proof of identity and work authorization (Form I-9; E-Verify where used)

List only conditions you actually apply to everyone hired into that job. Adding a condition for one candidate and not others is how discrimination claims start.

Why the order of steps matters legally

Several US laws require or encourage certain checks to happen only after a conditional offer:

• ADA: employers may not ask disability-related questions or require medical exams before a conditional offer. After the offer, a medical exam is allowed if it is required of everyone entering that job category, and the results are kept confidential and separate from the personnel file. An offer can be withdrawn based on the results only if the person cannot perform the essential functions of the job, with or without reasonable accommodation, or would pose a direct threat. Note that tests for illegal drug use are not medical exams under the ADA.
• Fair chance laws: many states and cities bar criminal history questions or checks until after a conditional offer. See ban the box.
• Drug testing rules: some states and cities limit pre-employment marijuana testing for many roles or set their own testing procedures.

The practical benefit of this order is that you know the candidate is otherwise selected, so any withdrawal can be tied clearly to the condition that was not met.

Withdrawing a contingent offer

When a background check finds something, do not withdraw on the spot. If the check was run by a consumer reporting agency, the FCRA requires a pre-adverse action notice with a copy of the report and the summary of rights, a reasonable waiting period for the candidate to dispute or explain, and then a final adverse action notice. Many fair chance laws add an individualized assessment of whether the record is job-related, plus their own notice and waiting periods.

For medical results, withdraw only on the ADA grounds above and after considering accommodation. For drug tests, follow your written policy and state law, including any confirmation testing requirements.

Document the specific condition that was not met and keep the records. Rules vary by state and city, so build your withdrawal process with counsel.

Contingent offers in high-volume hiring

In volume hiring, the time between conditional offer and final clearance is where candidates disappear. A warehouse that takes 10 days to clear checks will lose people to employers who clear in 3. Practical steps:

• Send the background authorization with the offer, not as a separate step.
• Choose screening vendors with fast turnaround and track average days to clear.
• Text candidates status updates while checks run.
• Book orientation dates in advance so cleared candidates start right away.
• Track drop-off between offer accepted and checks cleared as its own metric.

Avoid letting candidates start work before conditions clear unless your policy and counsel allow it; if they do, make the conditional status clear in writing.