Misleading a Potential Employee

The California Supreme Court ruled that an employer who uses misrepresentations to induce an employee to take a job may be liable for fraud if the company later terminates the employee.

In Lazar v. Rykoff-Sexton, Inc., the employee was intensely recruited to leave his long-term employment to accept a job in California. The company made promises of job security, significant and regular pay increases and bonuses. Based on these promises, the employee accepted the job and moved to California. Two years later, the employee was terminated, having failed to receive the promised bonuses or salary increases. The California Supreme Court