My fiance was hired as an RN by a hospital in the Twin Cities to start work this summer straight out of college. She signed an official contract/offer letter that stated a specific start date and obviously required her to meet several conditions (drug tests, etc.), which she did, but made no mention of the offer being at will or retractable for "financial reasons." One week before her start date, they called a surprise meeting to tell the new grads that they're start date was delayed at least two months with no guarantee of starting even then. This was all for "financial reasons." Obviously, to make ends meet, she had to find another job, and was successful in missing out on only one week that she would have otherwise been working at the first hospital. The replacement job has much worse benefits, pay, a longer drive, poor training etc. Also, the hospital was aware of the situation much before the week's notice they gave the new hires. In fact, current employees were informed of the situation and the hiring freeze nearly a month in advance of the external new hire being told---they were clearly withholding the information for their own betterment in case they did need them (otherwise they would have all left before then). The hospital never put anything in writing, and the union the nurses would have joined had they started won't help them. Months later when it was a mute point, we did receive a letter saying they were sad that "she had left for a new job" with no acceptance of responsibility or recognition that they had effectively laid her off.

Sorry for all the background/facts, but what rights do we have? We feel that we were/are significantly put out by this and, beyond the unfortunate situation, are appalled at the way it was handled. We didn't get hurt as bad as many of her friends who are still looking for work. We've consulted my business's attorney who has said we have a clear case based on contract law, but from an employment law/HR perspective, do they have further liabilities or damages that these nurses are entitled to?

IMHO, you have far from a "clear case" of a breach of contract. It is the rare occurrence wherein an offer letter constitutes a legally enforceable contract. However, I obviously have not seen/read the letter, so can offer only an opinion based on general experience. It would be my best advice to contact local counsel and show him/her/them the letter.

Also, if there is no contract, then there is no employment relationship. In that sense, at-will status or not is immaterial. Nevertheless, I shall assume that the letter does not provide a term of employment, ie, that you will have a job for X days/weeks/months/years, correct? Moreover, if you in fact had begin work would it be fair to say that you would have a certain probationary period before you received protection under the CBA? If so, then your employment would effectively be "at will" until such time as you were no longer considered a probationary emploee under the CBA.