Employment Law Questions? Ask an Employment Lawyer.
The issue is entirely controlled by the contract language. If the contract is for a fixed term and is not conditioned on your never having committed a felony, then the employer is bound and you can sue for lost wages until you find substitute employment.
If the contract is not for a fixed term, or expressly states that it is "at-will," then the employer can rescind or terminate the agreement at any time for any reason or for no reason at all, and there's nothing that you can do about it.
The contract was for a 2 year period to start on or before Oct. 1st 2008.
Your answer makes since it's just a matter of how I was approached and what was verbalized "all you need is your license and I've got a job for you. Your past jail time is not a concern."
Based on your facts, it looks as though you may have a case. Get yourself an employment attorney.