Is It Illegal To Hire an Employee Under False Pretenses or Promises?

Imagine a hiring manager who wants to recruit their competitor’s top salesperson. They know they will have to make the conditions of employment look very attractive. So, the hiring manager tells the salesperson that if they join the new team, they will have access to a larger sales market, lead sales projects, and higher commissions. Based on these promises, the salesperson takes the job. But the new employer doesn’t follow through and the salesperson makes less money than before and never gets promoted.

Employees have legal options to recover in situations like this. However, according to employment law attorney Christopher Lenzo, the success of a claim “really depends on the specific facts.” This article covers some of the legal issues implicated when a new employer makes false promises — and why employers should never make promises they can’t keep. An experienced employment lawyer can provide specific legal guidance for your situation.

Defining False Pretenses in Employment

If your employer or recruiter gave information they knew they couldn’t follow through on, they probably made a false promise.

Whether it was negligent misrepresentation or intentional, if you took the job and/or it is your current position, you may be able to make a successful claim for damages.

Employee Rights and Legal Consequences for Employers

As a current or past employee, you may have several legal options to address false and misleading statements concerning employment promises. These rights come with consequences for employers.

Promissory Estoppel

One legal claim that may be available to you is promissory estoppel, a theory in contract law that lets you recover losses from reliance on a broken promise. “Say an employer offers you a job and then says there’s no job before you even start,” says Lenzo. “You’ve incurred expenses based in reliance on the promise of the job. In this case, most states will acknowledge a promissory estoppel claim.”

Each state has statutes or case law governing promissory estoppel, but the general requirements are as follows:

• An employer promised something to a current or prospective employee
• The employer didn’t fulfill the promise
• The employee relied on the promise in making a job decision
• The employee suffered losses as a result of relying on the broken promise

What do you get in a successful promissory estoppel claim? Courts will award reliance damages that compensate you for losses incurred in reliance on the promise. This could include things like moving costs or lost wages. An employment attorney can help you assess your state labor code and other applicable laws regarding promissory estoppel and the damages you could receive from the employer.

Fraudulent Inducement

Fraudulent inducement of employment is another legal claim that may apply to your situation. The requirements for fraudulent inducement are:

• The employer intentionally made a misrepresentation to get an employee to accept a job offer
• The employee reasonably relied on the false representation in taking the job (and maybe wouldn’t have taken the position otherwise)
• The employee suffered losses as a result (for example, lost income, lost job opportunities, reduced financial security, poor working conditions)

If this claim seems similar to promissory estoppel, that’s because it is. What distinguishes it is the employer’s deception. The “employer made false statements and knew they were false at the time they made them,” Lenzo explains.

Another important difference between promissory estoppel and fraudulent inducement is the damages available. Lenzo says you can get both reliance and expectation damages for a fraudulent inducement claim. Expectation damages are what you would have gotten if the employer followed through on their bargain.

If you have a promissory estoppel claim, you may also have a fraudulent inducement claim, but this isn’t necessarily true. Proving a fraud claim might involve more proof and can be more difficult. You need as much evidence as possible to show that an employer was deliberately misleading. Evidence can include the following:

• Emails
• Messages
• Meeting records
• Phone call records

An employment lawyer can help you assess your case and find the best options for bringing a claim.

Breach of Contract

In some cases, false promises might involve a breach of contract. Suppose you signed an employment contract with a prospective employer. The employment agreement outlined the job requirements and your salary, benefits, vacation time, etc. But when you start working, your employer doesn’t fulfill one of these key contract provisions. In this case, your employer may be in breach of the contract.

Depending on the specific facts of your case, you may be able to sue for both fraudulent inducement and breach of contract. An employment lawyer can assess which claim is best in your situation.

Limits of At-Will Employment

With few exceptions, every state has some form of at-will employment, meaning that both employer and employee can end the employment relationship at any time and for any reason. If there is no contract and an employer doesn’t violate discrimination laws or other public policies, they can terminate an at-will employee or change conditions of employment at any time. If you are employed at-will, there are no specific guidelines for when your job can end. You cannot sue for wrongful termination except for limited circumstances.

At-will employment can cause problems for people seeking recovery for false promises. Lenzo gives the following example: “Say that a week after an at-will employee is hired, they get fired. In this case, they’re generally out of luck.” However, if an employer made promises about employment, they may still be liable. Cases involving an employer’s false promises are very fact-specific, Lenzo says. Speaking to an employment law attorney is the best bet for determining the specific course of action for your employment issues.

Addressing Misleading Job Offers

Addressing misleading job offers depends on the circumstances of your employment.

• Gather relevant evidence. You should gather the evidence that proves your position.
• Analyze your records. Reviewing your records can help identify any suspicious activities or communications that could be misleading. Organize the records so that they clearly show your case.
• Schedule a meeting with your employer. At the meeting, calmly state your concerns regarding your belief that the employer hired you under false pretenses or promises. Show them your evidence.
• Consult with an employment attorney. If the employer’s response is unsatisfactory, you can consult an employment attorney. They can help you further explore potential legal claims and next steps, including requesting mediation with a neutral third party or filing a lawsuit.

Sometimes, when a situation or work environment differs from what you thought it would be, it does not amount to a situation where you can successfully sue your employer. An employment lawyer can help you analyze your circumstances.

Finding the Right Attorney for Your Needs

Many attorneys provide initial free consultations to prospective clients. These meetings are an excellent way to get sound legal advice. They allow the attorney to hear the facts of your case and for you to determine if the attorney meets your needs. To see whether an attorney is a good fit, ask informed questions such as:

• What is your fee, and what billing options do you offer?
• What is your experience as an employment lawyer?
• What are my chances of success in legal action against my employer?
• What kind of damages could I get in my case?

Visit the Super Lawyers directory to find a lawyer practicing employment law.