What Happens When Employers Make False Promises

A false promise happens when a employer or hiring manager makes a statement on something the company can fulfill or avoid, but cannot or does not want to follow through with. You may bring a fraudulent inducement lawsuit against the employer for false promises for the harm you have suffered.

By Douglas Wade, Attorney

Email | Call (800) 484-4610

Have a quick question? We answered nearly 2000 FAQs.

Table of Contents

1. What constitutes false promises?

2. What workers can do in the wake of false promises?

3. At-Will employment versus false promises

4. Companies must honor their commitments

In an attempt to win over job seekers, managers and HR executives must exercise caution in what they say.

Employers make every effort to make an impression on candidates in their expectation of drawing in the best people. This means that managers who hire should exercise caution while courting candidates since they could make a misleading promise that causes a misunderstanding or even leads to a lawsuit against the organization.

However, is it even possible for a worker to sue for making false promises? Employers need to first define false promises in order to respond to that question.

What constitutes false promises?

A recruiting manager can give a false promise, also called a deceptive enticement of employment, if they declare something that the company can or should do but are unable to or choose not to go through with. The purpose of these claims is to persuade prospective employees to think of working for the organization. For present employees, a false promise may also occur. False claims might be made by managers and HR directors to persuade an employee to remain with the company.

These allegations of fraud may include but are not limited to, assurances of an impending promotion, larger bonuses, moving to a favored team following project completion, an impending change in work timeline, accepting more work in exchange for the opportunity to participate in a significant project, and an extended benefits package in exchange for remaining in the position longer. All of these assertions could, of course, be true and fair. Assume, however, that neither the promised improvements nor any progress in achieving them are being shown in the working circumstances of the employees. If so, it may be deemed a false promise, regardless of the employer’s intention.

Learn how to enforce a verbal contract in court.

What workers can do in the wake of false promises?

Employees who feel they were misled by their employer may be able to sue for losses they suffered as a result of entering or remaining in the organization on false pretenses.

To assert they were duped by false promises, employees must, however, meet a number of requirements. The employee has to demonstrate:

The management or employer must have known the offer was untrue and made a deceptive distortion of the facts;
The manager or employer promised to use their influence to persuade the worker to accept the activity or contract;
The employee’s decision to take the job or activity was mostly motivated by the promise; and
The worker suffered consequences such as losing a stable job in exchange for the assurance and having to drastically alter their way of life, like migrating.

If the worker can show tangible proof that the employer or manager made false promises, they might bolster their case for fraudulent inducement. These could be verbal declarations, letters, emails, or job contracts.

For the employee’s claim to be recognized as a false solicitation of employment, it must be demonstrated that the deceptive offer was made with deliberate intent. If the judge could be convinced of the fraudulent promise, damages could be awarded.

At-Will employment versus false promises

For at-will workers, proving misleading promises could be more difficult. Employees that have an at-will contract of employment are free to end the job at any point, with or without reason, justification, or prior notice, provided that doing so is not in violation of local, state, or federal anti-discrimination legislation.

Because of this, it is challenging, although not impossible, to demonstrate that the employer gave a misleading assurance. The employer cannot be held liable for not fulfilling an assurance of certain conditions because the worker has accepted an at-will contract of employment and the employer has the freedom to modify the at-will worker’s job conditions at any moment.

Companies must honor their commitments

Despite the at-will nature of the job, it is preferable for managers and employers to fulfill their commitments. Encouraging the best candidates while holding onto highly qualified current personnel is the aim of every organization. That being said, it is terrible and inappropriate behavior, especially for those who manage a team along with other employees, to make promises to employees about promotions, awards, and benefits and then not follow through on them.

A company’s perception of its employees is demonstrated by its fulfillment of promises. Although it’s simple to ignore a promise, a company that genuinely cares about its employees will go over and beyond to give the best working environment possible in accordance with the terms of their agreement. Employee engagement, retention, morale, and productivity all benefit from this increased sense of trust between the staff and the organization.

Employees can develop realistic judgments about the company and determine whether or not they connect with its goals and principles by being given clear and honest information about what to anticipate from their duties and the organization. Employers are then better able to identify candidates who are an ideal match for the job, thereby reducing the possibility of selecting a candidate who would quit soon because the employment position did not meet their expectations.

In any situation, HR managers and leaders have an obligation to be truthful with staff members and should make every effort to present an optimal job opportunity. But workers also have a responsibility to identify the difficulties in their roles and let their supervisors know about them. Each function has unique obstacles to overcome, but with teamwork and collaboration between employers and employees, it is feasible to actively resolve what has led to the problem and greatly reduce stress and difficulties. Also, by boosting other areas of the business that weren’t considered problematic until workers voiced their issues, this lets the company keep its commitments.

Have a quick question? We answered nearly 2000 FAQs.

See all blogs: Business | Corporate | Employment

Most recent blogs:

How to Calculate FTE

To calculate full-time equivalent (FTE), divide an employee's scheduled hours by the employer's hours for a full-time workweek.

Weingarten Rights

Understand Weingarten Rights: the right to have a representative during investigatory interviews as protected under the NLRA. Learn how these rights empower employees and safeguard their interests.

Can you get fired for using sick time

Understand your rights under California's Sick Leave Statute, protecting employees who need to take time off due to illness. Learn how legal protections safeguard against wrongful termination for using sick leave.

Insubordination in the workplace: 7 ways to manage

Navigate the challenges of insubordination in the workplace with effective strategies for managing difficult employee behaviors and fostering a positive work environment. Learn the importance of distinguishing between disagreement and insubordination for organizational health.

Diversity, Equity, and Inclusion

Explore the importance of diversity, equity, and inclusion in today's society. Learn how these values shape better, more inclusive communities and workplaces.

Human Resources (HR): Meaning and Responsibilities

Human Resources plays a pivotal role in recruiting, training, and managing employee relations, shaping a company's workforce for success. Discover the evolving responsibilities and strategic importance of HR in modern business dynamics.

10 Alternatives to Employee of the Month Awards

Discover the limitations of traditional Employee of the Month awards and explore ten innovative alternatives. Boost morale and recognition in your workplace with these creative solutions.

Learning To Learn

Discover the essential skills for modern leaders to thrive: learning to learn, adapting to change, and mastering new capabilities. Unveil strategies for personal growth and overcoming reluctance to embrace new challenges.

Gen Z Years, Age Range, Meaning, & Characteristics

Explore the defining years, age range, and unique characteristics of Generation Z, shaped by pivotal events like the pandemic and the digital age. Uncover insights into Gen Z's diverse demographics, digital nativity, and shifting social norms.

Quid Pro Quo Sexual Harassment and Law

Explore the origin and evolution of "quid pro quo," a principle that embodies mutual exchange in legal, political, and everyday contexts. Learn how it differentiates from bribery and shapes contracts, policies, and workplace ethics.

What is Sabbatical Leave? It’s the best kept secret in HR

Unlock the power of sabbatical leave to boost employee motivation and retention in a stagnating labor market. Learn how a planned break can give your company a competitive edge in attracting top talent.

At-Will Doctrine

Explore the at-will employment doctrine's impact on job security and termination rights in the US, highlighting key legal exceptions. Understand how at-will affects both employers and employees, with insights into valid termination causes and protections.

7-Day Work Week

Discover your rights under the 7-day work week laws, including eligibility for overtime and restrictions in some states. Learn about federal and state regulations, and when to seek legal action for wage violations.

What Happens When Employers Make False Promises

What to do if your employer doesn’t pay you?

If your employer failed to pay you for all of your work hours, a court could award you back pay. When your employer doesn't pay you, you should consult with an employment lawyer.

What to Do At a Job Fair to Impress Employers and Get the Interview

This article provides guidelines for job seekers to follow to ensure they are successful at career fairs. There are many things you can do to improve your chances of getting hired at a job fair.

Emotional Duress: How to Avoid

Emotional duress is an extremely unpleasant emotional response from someone else's conduct or actions. You can sue for money damages for anguish, or humiliation. This is known as emotional harm or mental anguish.

California Termination Laws

In California, an employee's employment may be terminated at the will of either party. Employees who are terminated must be paid all wages due at the time of termination.

Late Paycheck Penalty

When your paycheck is late, the employer has to pay a penalty of one day's pay for each day that the paycheck is late, up to a maximum of thirty days.

How To Calm Down Before An Interview

12 simple ways on to calm your nerves before and during an interview is to use relaxation techniques. Before an interview, imagine how you would ideally want to present yourself in the interview and then visualize yourself in the interview.

How to Include a Referral in Your Cover Letter?

Your cover letter should start with mentioning the referral's name because it instantly qualifies you. A referral cover letter helps you to define the mutual contact that has referred you for the job.

Best Job Options For Someone With A Criminal Record

This article identifies jobs for someone with a criminal record; examples are: delivery service, freelance designer, truck driver, chef, etc.

What are Weingarten Rights?

Weingarten rights guarantee an employee the right to Union representation during an investigatory interview by their employer.

What Is Job Rotation: Advantages And Disadvantages

Job rotation is the practice of moving employees between roles or positions in a company. Job rotation temporarily assigns employees to other roles to teach them new skills, learn about other functions within the team, and develop relationships across the business.

What is the meaning of Pay Rate?

Pay rate is the total money a worker receives during regular working hours, excluding overtime. In order words, pay rate, also called salary rate or compensation rate, is the wage amount paid to an employee per hour, per day, or per task completed.

How can part-time or temporary work help you explore career choices?

Part-time or temporary work offers a practical way to explore exploring and understanding what career you want. Temporary work or part time work gives you the opportunity to discover your strengths, preferences, and passions without the long-term commitment required by full-time work.

Understanding Incentive Pay: Definition, Types, and Benefits Explained

Learn how different forms of incentive pay, from bonuses to commission, can drive business success and enhance workforce engagement. Discover the key benefits and best practices of implementing incentive pay strategies in your organization, essential for attracting and retaining top talent.

What Happens When You Get Audited EDD

Gain clarity on the EDD audit process with our comprehensive guide, detailing what happens when you get audited by the Employment Development Department, including steps to prepare and respond effectively." "Navigate the complexities of an EDD audit smoothly with our expert insights, exploring the implications, documentation requirements, and key strategies to manage the auditing process efficiently and confidently.

What is FMLA Intermittent Leave of Absence?

An employee uses their 12 weeks of unpaid leave intermittently under FMLA Intermittent leave, taking it off and on, unlike continuous family medical leave or a reduced work schedule. FMLA leave can be taken intermittently by employees – in separate blocks of time for a single qualifying reason – or on a reduced leave schedule, which involves reducing the employee's usual weekly or daily work schedule, when it is medically necessary.

What is a statutory employee?

A statutory employee is a salesperson, either traveling full-time or based in a city, who represents you and submits orders from wholesalers, retailers, contractors, or operators of establishments such as hotels and restaurants. The merchandise sold should be for resale, or the supplies should be for use in the buyer's business operation. For you, the principal business activity performed must be the salesperson's work.

See all blogs: Business | Corporate | Employment

What Happens When Employers Make False Promises

What constitutes false promises?

What workers can do in the wake of false promises?

At-Will employment versus false promises

Companies must honor their commitments

Free Consultation