Fraudulent Inducement and Employer Liability: "A Chink in the At-Will Employment Doctrine Armor?"

David F. Chuff

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DOI: 10.2190/71H9-N3DL-JCWN-CBCE

Abstract

Today, more courts around the country are allowing at-will employees to sue their employers under the theory of fraudulent inducement. Under this theory, some courts have held employers liable for promising their employees continued future employment. Additionally, employers can be held liable for intentionally lying to a prospective employee about a material aspect of the job, if the prospective employee detrimentally relies on the promise. Employees who detrimentally rely on employers' misrepresentations can potentially recover punitive damages, in addition to any damages directly related to the fraud claim. This article examines how the fraudulent inducement theory affects the at-will doctrine.

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