Key Takeaways: A hiring letter of intent (sometimes called a letter of intent from employer) is a professional, non-binding document that outlines the key terms of employment before the formal offer letter or contract. As an employment attorney and template specialist with over 12 years drafting these for U.S. companies, I’ve helped hundreds of HR teams and startups close top talent faster while reducing legal risk. Below you’ll find my fully updated 2025 hiring letter of intent template – free to download and customize – plus step-by-step guidance on when and how to use it correctly.
Important Disclaimer: This article and template are for informational purposes only and do not constitute legal advice. Always have employment documents reviewed by qualified counsel in your state.
A hiring letter of intent from employer to candidate is a written preliminary agreement that signals serious intent to hire while the parties finalize background checks, references, drug screens, or a formal employment contract. It is not the same as an official offer letter or employment agreement, which are typically binding.
The IRS and U.S. Department of Labor do not require a letter of intent, but when used correctly it serves three powerful purposes:
In my experience, the hiring letter of intent shines in these common scenarios:
| Scenario | Best Document |
|---|---|
| Executive or high-level hire with complex comp package | Letter of Intent → Formal Contract |
| Contingent offer (background, reference, drug test) | Letter of Intent (clearly states contingencies) |
| Remote hire across state lines | Letter of Intent while finalizing state-specific terms |
| Candidate requests written confirmation before giving notice | Letter of Intent (faster and less legal exposure) |
| Standard non-exempt or exempt hire with simple terms | Traditional Offer Letter (binding) |
Click here to download the free Word .docx template – no email required.
Or copy-paste the full text version below and customize:
[Company Letterhead] [Date] [Candidate Full Name] [Candidate Address] [City, State, ZIP] Re: Letter of Intent Regarding Employment with [Company Name] Dear [Candidate First Name], This Letter of Intent (“LOI”) sets forth the principal terms and conditions of our mutual intention for you to join [Company Name] (“Company”). Both parties acknowledge that this LOI is non-binding except for the sections explicitly identified as binding (Confidentiality, Exclusivity, and Governing Law). 1. Position and Department: [Full Job Title], reporting to [Manager Name and Title]. 2. Start Date: On or before [Proposed Start Date], subject to successful completion of all contingencies. 3. Base Salary: $[Annual/Monthly/Hourly] paid [bi-weekly/monthly] in accordance with Company payroll practices. 4. Bonus/Commission: Eligibility for [describe bonus plan or commission structure]. 5. Benefits: Eligibility to participate in Company benefit plans per standard policy (summary attached or to be provided). 6. Work Location: [Office address] or fully remote in [state(s)]. 7. Contingencies: This LOI is contingent upon: • Satisfactory background check • Reference verification • Proof of eligibility to work in the United States (I-9) • Signed Proprietary Information and Inventions Assignment Agreement • [Any other contingency] 8. Exclusivity (Binding): For [14–30] days from the date of your signature, you agree not to entertain or accept other offers of employment. 9. Confidentiality (Binding): You agree to keep the terms of this LOI confidential. 10. Governing Law: This LOI shall be governed by the laws of the State of [State]. This LOI does not constitute a legally binding offer of employment or employment contract. A formal offer letter or employment agreement will follow upon satisfaction of all contingencies. We are excited about the possibility of you joining the team! Sincerely, [Signer Name] [Signer Title] [Company Name] [Phone | Email] Accepted and Agreed (non-binding except Sections 8–10): _______________________________ ____________ [Candidate Name] Date
Follow these best-practice tips I give every client:
Is a letter of intent from employer legally binding?
Only the sections you explicitly designate as binding (usually confidentiality and exclusivity). The employment terms themselves remain non-binding until the formal offer.
Can a candidate sue if we withdraw after they sign the LOI?
Generally no, provided you (1) clearly stated contingencies and (2) withdrew for legitimate reasons tied to those contingencies.
Should we have our attorney review every LOI?
For standard hires: no. For C-suite, sales roles with large commissions, or hires over $200k: yes.
A well-drafted hiring letter of intent is one of the highest-ROI documents an HR team can have in their toolkit. It closes candidates faster, reduces ghosting, and gives you breathing room to dot every legal “i” before extending the binding offer.
Download the free template above, swap in your company details, and start using it today. Your recruiters (and your new hires) will thank you.
Again, this template is provided for informational purposes only. Always consult employment counsel licensed in your state before using any legal document.
Sources:
IRS.gov – Employment Eligibility Verification (Form I-9)
U.S. Department of Labor – Wage and Hour Division guidance
Various state pay-transparency statutes (2024–2025)