What Recourse Do I have?

I worked for a large investment company from 1999 to 2001. I voluntarily resigned to relocate. To make a long story short two weeks ago I was offerered a position with the same company. Each person I met with said that checked internally to see if I was elgible for rehire; all said I was. I got an offer, successfully passed the credit and background check and was given an offer letter with a start date etc... I am schedule to start Monday the 24th and today I get a call from HR saying they just noticed I am not eligible for rehire. They are investigating the reason, but right now my job is in limbo. My wife and I laid out money for daycare for our daughter, my wife rearranged her work schedule etc.. They money is not that big of a deal, but they made me an offer and said I was elgible now a few days before I start they notice I am not.
So here is my question. Even though I am employed at will, do I still have recourse? Obviously it is their problem not mine.

It's hard to say without knowing why you would not be eligible for rehire. If something came up in your background check (for example, a felony conviction), if you failed a drug test, etc., they would be within their rights to refuse to hire you.

Although an offer letter is not a binding contract in the USA, there are some legal issues having to do with enticing an employee to take a job and then not following through. If you suffer a loss as a result of the company's change of heart- for example, if you quit another job to take this one, or relocated, or (as you describe) paid for alternate child care arrangements - you may be entitled to legal consideration.

Talk to HR and find out what the issue is - you have a legal right to know why your employment offer is being rescinded. Hopefully they will be able to work this out. Good luck!

Unless you signed a contract with them and they reneged on it, you have no legal recourse. In addition, if you TRIED to legally force them to comply it would be a good way to insure that they would NEVER consider hiring you ever again. Is it worth it?

If you have not been hired then you have no recourse unless you feel it was based on discrimination. Even if you were hired...depending on what state you live in they could get rid of you for no reason. Some states are "work at will" states and they do not have to give a reason for dismissal.

An offer letter is not a binding contract, it is a confirmation of the terms of the job being offered. And, I would bet, that in the job application or other paperwork there is a clause that states the offer and job are pending a background check and can be withdrawn. (Reread it if you have a copy) Obviously something came up in the checking process and they now need to reconsider it. Find out what the problem is, see if you can clear it up if it is a misunderstanding.

You don't have any legal footing to sue them for a retraction of a job offer letter.