Fraudulent Inducement of Employment
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What is Fraudulent Inducement of Employment?
Fraudulent inducement of employment occurs when an employer makes a false statement to an employee about something to make them take a job, or continue working a job, when the employee would not have taken or kept the job had they know the truth of the statement.
For example, boss X might say to a job applicant A: "Come work for my company, we'll pay you $30 an hour!" If job applicant A takes the job from boss X because of the statement that he will be paid $30 per hour, but boss X only pays $20 per hour, job applicant A might be able to sue boss X and the company for fraudulent inducement of employment.
The most common types of false statement an employer can make to an employee to entice them to take, or keep, a job are associated with:
- Length of employment,
- How much the employee will be paid or the terms of compensation, and
- Work conditions the employee can anticipate.
If an employer makes a false statement and fraudulently induces employment, it may be possible for the employee to sue the employer for damages.
What Do I Need to Prove to Sue for Fraudulent Inducement of Employment?
In order to sue an employer for fraudulent inducement of employment, an injured employee must prove that:
- The employer made an intentional misrepresentation of a fact,
- The misrepresentation was material to the decision to accept or continue employment,
- They reasonably or justifiably relied on the the misrepresentation, and
- They suffered some injury.
An employee who is injured because of a false statement by an employer can have alternative means of recovery too. They include suing for:
- Fraudulent concealment,
- Failure to disclose, or
- Negligent misrepresentation.
Are There Any Defenses?
An employer who is sued for fraudulent inducement of employment has many defenses available to them. They include:
- No fraudulent misrepresentation took place,
- The statement the employer made is covered by an employment contract, and the only liability could be for breach of contract,
- The statement was not intentionally made,
- No employee could have reasonably or justifiably relied on the statement,
- The misrepresentation was a promise and not enforceable under contract law,
- A federal or state statute bars the lawsuit, or
- A traditional workers' compensation claim is more appropriate.
Do I Need an Attorney to Handle my Fraudulent Inducement of Employment Issue?
If an employer made false statements to get you to start or continue a job and you became injured as a result, or you are being sued by an employee for fraudulent inducement of employment, it is strongly recommended that you contact an employment attorney. Only an attorney will be able to adequately explain the issues and help defend your rights.
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Last Modified: 02-23-2012 11:17 AM PST
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