NJ Employment Fraud and Misrepresentation Lawyer

New Jersey Attorneys Representing Mistreated Workers

Employers commonly offer certain benefits or perks to job applicants to make a new position appear more enticing. If an employer makes promises to a prospective candidate but then fails to uphold its end of the bargain, it may be actionable. Specifically, if an employer misleads an individual into accepting a position, the employer may be liable for employment fraud and misrepresentation.

Examples of Employment Fraud and Misrepresentation
An employer may make inaccurate statements to a potential employee about the specific position in which the person is interested. For example, an employer may deceive an employee about benefits, salary, stock options, or commissions. An employer may also make false assertions regarding job duties or the hours required. Additionally, an employer may attempt to deceive a potential employee about the company as a whole. In other words, the employer may tell a person falsehoods about the potential for growth, the strength or stability of the company, or opportunities for promotion. If a person is swayed into accepting a job based on promises that later turn out to be untrue, it may be actionable. Whether the person may pursue a claim for misrepresentation or fraud depends on the facts of the case.

Pursuing an Employment Fraud and Misrepresentation Claim Against an Employer

Generally, in cases in which a false statement was not made with the intent to deceive an employee, the employee will pursue a negligent misrepresentation claim. In New Jersey, to recover damages for negligent misrepresentation, an employee must prove that the employer negligently made an inaccurate statement that the employee relied upon in accepting a position. The employee must also show that the reliance on the inaccurate statement caused him or her to suffer an economic loss.

Notably, an employer may also be held liable for providing untruthful information to a former employee’s potential new employer. For example, if a company contacts the former employer of a job applicant for a reference, clearly stating the nature of an inquiry, an employer may be inclined to respond with false information about a former employee. If the former employer does so, and the person receiving the information believes it to be true and takes an adverse employment action against the former employee which results in quantifiable harm, the former employer may be found accountable. An experienced attorney can review your case to determine whether you have a viable claim.

Elements of a Fraud Claim in the Employment Context

Fraud claims are similar to misrepresentation claims but involve an element of intent. In other words, an employer may be liable for fraud if the employer made a material misrepresentation related to the employment that the employer knew or believed to be false, with the intent of inducing the employee to rely on it, if the employee reasonably relied upon the statement and suffered damages as a result.

Generally, the damages recoverable due to misrepresentation or fraud aim to place the employee in as good of a position as he or she would have been if the promises had been kept. If an employee proves the employer intentionally engaged in fraud, however, punitive damages may be imposed as well.