In California, fraudulent inducement of employment happens when an employer communicates a false statement to a person in order to induce them to stay in a job or to move to take on a new job or assignment. A person who has been the victim of fraudulent inducement of employment may have grounds to sue the employer.
In addition to being a civil wrong, fraudulent inducement in California is a criminal offense. A person who has been the victim of fraudulent inducement can file a police report. However, a victim does not have to report an instance of fraudulent inducement to law enforcement in order to file a civil lawsuit for money damages for lost wages. As a crime, fraudulent inducement is a misdemeanor criminal offense.
A person who is convicted of fraudulent inducement may be punished as follows:
- A maximum of 6 months in jail and/or
- Payment of a fine of between $50 and $1,000.
Criminal punishment would be in addition to paying any money damages for which the employer is found liable in a civil court.
What Are Some Examples of Fraudulent Inducement of Employment?
Fraudulent inducement must involve an employer communicating false statements or promises about important aspects of a job. For example, statements about the following might qualify:
- The existence of a real job opportunity, possibly with attractive benefits such as generous pay and appealing working conditions
- The nature of the work that the prospective employee would do
- The conditions under which an employee would work
- Whether the job would be covered by workers’ compensation
- The length of the employment, e.g., promises of job security
- The compensation for the work to be performed,
- The safety and cleanliness of housing offered as an employment benefit or of the worksite
- Whether a strike or other labor conflict is currently in progress in connection with the job.
- The employment benefits that would be provided, e.g., health insurance coverage.
For example, a recruiter for an agricultural enterprise tells a potential employee that if the employee moves to another city, they will be paid $23.00 per hour. When the potential employee accepts the job and moves to another city at their own expense, they receive their first paycheck and discover that they are being paid only $15.00 per hour.
What Are the Elements of Proof?
Fraudulent inducement of employment is prohibited by California labor law. The law was enacted in order to protect migrant workers who were being routinely exploited by the practice. The law applies to promises concerning both permanent and temporary moves to gain employment. Migrant workers often move around from worksite to worksite in reliance on the promise of work from a prospective employer.
To succeed with a complaint alleging fraudulent inducement of employment, an individual would have to prove each of the following elements:
- An employer made a statement about an important fact concerning a job.
- The statement was made to a prospective employee or an existing employee.
- The statement was false.
- The employer knew that it was false when they made it.
- The employer expected that the person to whom the statement was made would rely on the false statement.
- The person to whom the statement was made relied on it and moved in order to work for the employer.
- The person was harmed as a result of relying on the false statement.
- The person’s reliance on the false statement was a substantial factor in causing harm to the person.
The proof that the victim produces at a trial must show that the fraudulent inducement was perpetrated knowingly or intentionally. If it was done negligently, that would not be sufficient to win a case.
Other causes of action, or claims, are available to a victim of fraudulent inducement. For example, causes of action for intentional misrepresentation, promissory estoppel, intentional interference with prospective economic advantage, and breach of the implied covenant of good faith and fair dealing would also be possible claims for the victim. Alleging negligent misrepresentation would also be an option.
The advantage of claiming fraudulent inducement is that California law provides that a victim may recover two times their lost wage damages from the employer. Other claims would not give the victim damages equal to two times the sum of their lost wages.
However, other claims may allow other kinds of damages that are not allowed for a claim of fraudulent inducement. A victim would want to have a legal consultation in California with a California attorney to figure out which claims would produce the best result.
A person should consult with a knowledgeable attorney who could analyze their case and determine which causes of action would produce the best outcome for a victim, taking all of the factors of their situation into consideration.
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What Type of Evidence Might Help My Case?
A person to whom an employer has communicated false promises about employment may have received the false promises in a variety of ways, as follows:
- Verbally or orally,
- In writing, e.g., in an offer of employment or in an employment contract with which they have been presented,
- In a job announcement or advertisement.
If the fraudulent communication was made verbally, then it might be more difficult to prove in a court of law. But it would not be impossible. It would help if there are witnesses to the communication of the false promises.
However, because of this, a person may want to consider asking an employer or a potential employer to put all of their promises about the continuation of an existing job or a future job in writing.
A person would then want to be sure to hold onto any written document about a job or a job prospect, so they have it in the future if they need it. Generally, an individual wants to keep all communications from an employer or prospective employer and the names of all people who communicate with them on behalf of the employer.
They would want to collect the names and contact information of anyone who is a witness to interaction and communication between them and representatives of the employer. The names and contact information of anyone else who may also have been a victim of the employer’s fraudulent inducement would be helpful.
Again, a victim would be helped by consulting a California lawyer who would give them directions about how to collect the evidence needed to prove their case.
How Much Can I Get if I Sue My Employer for False Promises in California?
A victim who successfully proves all of the elements of fraudulent inducement would be able to recover double damages from the employer. This would be two times the amount that they would have earned from an existing employer if their employer had not misrepresented the terms and conditions of employment, e.g., the wage, to the victim.
Other claims might bring different amounts. Everything would depend on the facts of a particular case and the claims that a victim relies on in their case.
Are There Any Defenses to a Fraudulent Inducement of Employment Claim?
One defense is always to challenge the evidence that a victim presents in support of their case. Another defense available to an employer is to argue that any misrepresentations made were made as a result of negligence and were not intentional. It could be challenging to prove that misrepresentations were intentionally and knowingly made.
Do I Need an Attorney for a Fraudulent Inducement of Employment Claim?
If you have been the victim of fraudulent inducement of employment, you want to talk to a California employment lawyer. LegalMatch.com can quickly connect you to a lawyer who can review the facts of your particular situation and guide you to getting the remedy you deserve.