Prospective employees rely upon employers to provide accurate information as part of the hiring process. Colorado law strictly prohibits employers from using deceptive hiring practices or inducing employees to accept employment on the basis of materially false information.
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What Does It Mean to Be Hired Under False Pretenses?
Hiring under misrepresentation (sometimes referred to as fraudulent inducement of employment) refers to the act of inducing someone to leave other employment or accept a new job based on materially false or misleading facts provided during the hiring process.
This occurs when a hiring manager or representative intentionally misrepresents certain aspects of the job in order to cause the candidate to accept employment. Common examples include a false job description or lying about:
- The nature and character of the work
- Compensation and benefits
- Future prospects or promotions
- The financial stability of the employer
Such misrepresentations may be actionable and lead to significant potential liability for the employer and its managers for making materially false and/or misleading statements.
Is Job Misrepresentation Legal Under Colorado Statutes?
No. A little-known Colorado law, C.R.S. § 8-2-104, entitled “Obtaining Workman by Misrepresentation Unlawful,” makes it unlawful for an employer to induce an applicant to accept employment on the basis of false representations.
The law provides that it is unlawful for any employer doing business in Colorado to induce, influence, persuade, or engage workers to change from one place of employment to another through false or deceptive representations, false advertising, or false pretenses concerning the kind and character of the work, compensation, sanitary conditions, or the existence of a strike or lockout.
While an earlier decision suggested that the statute applies only to cases in which an employer brings workers into Colorado from another state (Vaske v. DuCharme, McMillen & Assoc., Inc., 1990), a more recent decision applied the statute to a change of employment entirely within the state (Boeser v. Sharp, 2004).
Elements Required to Sue an Employer for Deceptive Hiring
The elements a plaintiff must establish to sustain an action under Section 8-2-104 are the same as those for common law fraud. To successfully sue an employer for hiring under false pretenses, an employee must prove that:
- A False Pretense Was Made: The employer made a false and fraudulent representation with knowledge of its falsity and intent to deceive.
- Intent to Induce Action: The representation was made specifically to induce a person to accept the job or part with something of value.
- Justifiable Reliance: The employee reasonably relied upon the false representation or nondisclosure.
- Resulting Damages: The employee sustained actual damage (financial loss, career setback, etc.) in consequence of relying on the deceptive representation.
Damages: Holding Employers Accountable for False Promises
When an employee’s career is derailed by fraudulent inducement, the law provides a remedy. A prevailing employee is entitled to recover “all actual damages” as well as reasonable attorneys’ fees and costs under C.R.S. § 8-2-107.
Baird Quinn LLC is a boutique employment, labor, and commercial law firm in Denver, Colorado, that represents employers and employees in employment law disputes. Contact Baird Quinn LLC to learn more about your rights under Colorado’s job misrepresentation laws.
Frequently Asked Questions: Hiring Under False Pretenses
Can you sue an employer for hiring under false pretenses?
Yes. In Colorado, under C.R.S. § 8-2-104, you can sue an employer for job misrepresentation or fraudulent inducement of employment. You must be able to prove that the employer knowingly made false statements about the job (such as compensation, duties, or financial stability) specifically to convince you to accept the position, and that you suffered damages as a result.
What does it mean to be hired under false pretenses?
Being hired under false pretenses means an employer used deceptive hiring practices, false promises, or a completely false job description to lure you into taking a job. This is not just a misunderstanding; it involves intentional deception regarding the nature of the work, the pay structure, or the conditions of employment.
How much can I sue my employer for false promises?
Under Colorado law, if you successfully prove that your employer violated the “Obtaining Workman by Misrepresentation Unlawful” statute, you are entitled to recover “all actual damages.” This can include lost wages from leaving your previous job, moving expenses if you relocated, out-of-pocket costs, and reasonable attorneys’ fees.