Fraud in the workplace arises when an employer makes false representations, either orally or in writing, to an employee concerning the employee's job security, salary, potential bonuses or promotions, health risks, or other aspects of employment.
What are the elements of common law fraud?
To prove a claim of fraud, an employee must show:
- A past or existing fact was misrepresented to an employee (or a fact was hidden from the employee);
- The employer knew the representation was false;
- The employer had an intent to deceive;
- The employee relied on the representation to his disadvantage and suffered damages and/or injury as a result.
Employment Offers, Relocation and California Labor Code § 970
In addition, if an employer induces an employee to relocate his or her residence through knowingly false misrepresentations regarding the nature, duration, or compensation for the work to be performed, the employee may be entitled to relief under the California Labor Code. Pursuant to California Labor Code section 970, employers are prohibited from inducing employees to change their residence to, from or within California by making "knowingly false representations" concerning, in part:
- The kind, character, or existence of the work;
- The length of the time the work will last;
- The compensation of the work; or
- The sanitary or housing conditions relating to or surrounding the work.