Can I Sue My Employer for False Promises?

You don’t always need an employment contract to prove false promises. In some instances, spoken statements, recruiting tactics, emails, meetings, or other communications can constitute false statements that land an employer in trouble.

Understanding Your Legal Options: Promissory Estoppel vs. Breach of Contract

The legal theory you use depends on whether you had an enforceable contract with your employer. These are explained below:

• Promissory estoppel applies when there is NO enforceable contract: This applies when your employer made a promise that you reasonably relied on to your detriment, even though no formal contract existed. For example, if a manager verbally promised you a promotion if you stayed with the company, but you never had a written employment agreement, you would pursue a promissory estoppel claim.
• Breach of contract applies when there IS an enforceable contract: If you had a written or oral employment contract and your employer violated its terms, you would sue for breach of contract. This applies whether the contract was formal or informal, as long as it meets the basic requirements of a valid contract.

This article focuses on fraudulent inducement and promissory estoppel claims, which are the most common approaches when an employer makes false promises without a formal contract.

What Is Promissory Estoppel?

Due to the concept of promissory estoppel in contract law, you can recover money if you can show:

• Your employer made yobe g in the promise, you face a loss of money or job security, or other clear damages

Your state’s labor laws, employment-at-will laws, fraud claim regulations, and individual legal rights may vary. In general, you can sue for false representation if you have evidence.

What Are False Promises?

False promises from an employer or recruiter are statements that the company and its staff present as a “done deal” to the employee or prospective hire, but cannot follow through on. This can be in any of the following forms:

• “Don’t take a different job. We’re going to promote you soon.”
• “If you work extra shifts, you’ll get the next promotion.”
• “If you take this job, you will easily make six figures.”
• “You can expand your territory and make more sales if you join my team.”
• “If you work for me, I will let you take all the big projects.”
• “Take this contractor role. It’ll be full-time within a year.”
• “You’ll get two big bonuses a year.”

If you take the job or stay in your current position and nothing ever changes, your employer may be liable for making a false promise. Whether intentional or unintentional, you might be able to claim damages if you were promised something that would have resulted in more money but never materialized.

Damages are the money you lost by acting on the promise, such as taking a new job or staying in your current position. If an employer claims you’ll make $100,000 more by switching positions but limits your sales territory in the new role, you could sue for the amount of money you lost. A jury might also award damages for the emotional distress of moving jobs and having to go to court to fight for the money and job security you expected to have.

False Promises vs. At-Will Employment

Being an at-will employee means you do not have specific guidelines in your employment contract for when your job can end. Employees are presumed to be at-will in all states except for Montana. This allows your employer to fire you or change the job role, working conditions, or terms of employment at almost any time.

You cannot sue them for firing you at-will unless there are other illegal circumstances at play, such as:

• Discrimination based on protected characteristics like race, gender, age, religion, or disability
• Public policy violations, such as firing you for refusing to commit an illegal act or for exercising a legal right (like filing a workers’ compensation claim)
• Implied contract exceptions, where the employer’s policies, handbooks, or conduct created an implied promise of continued employment

You must choose to continue working in the new conditions or leave, unless one of these exceptions applies.

When Contracts Are Formed

An employer can form a valid contract with you if there is:

• An offer that guarantees performance (such as getting a full-time role)
• Offer acceptance from the employee
• Consideration from both parties (both parties provide something of value, like work in exchange for promised compensation)

If the guaranteed performance is not met, the employer has breached the contract. Contracts can be written or verbal, and judges take contract claims seriously. Keep in mind that in most states, employment contracts for terms longer than one year must be in writing to be enforceable under the statute of frauds.

What Employers Can’t Do

Recruiters and managers may make jobs sound better than they are to attract top talent. There are protections in place for your rights. This means employers cannot:

• Share confidential information
• Pay you less than agreed or not pay you enough under the law
• Provide unsafe working conditions
• Take away vacation time or benefits that are in your contract

If an employer violates these rules or breaks a valid contract, you may have legal claims such as wrongful termination or breach of contract.

Some red flags to look for during the employment process (interviews, salary negotiations, etc.) include:

• The employer makes verbal promises but refuses to commit anything to writing. Be especially wary if the employer promises to fix everything in your final contract but won’t put anything in your offer letter.
• Be wary if the contract language is vague, and the employer refuses to give you specific figures or timetables. Unless you’re taking a commission-based position, an employer should give you a concrete salary figure.
• Are you getting pressure to accept or sign quickly? Watch out for situations where you’re asked to sign an incomplete contract or employment agreement with a promise that they’ll get the final agreement to you when others have signed it.
• Promises that seem too good or out of step for the industry usually are. Always do your homework before accepting a job offer. Salaries or perks that are not standard for the job market or that seem unrealistic for your skill set should be approached with caution.

These are only a few of the things to beware of. If something doesn’t feel right, take a moment to reassess the situation.

Taking Your Claim to Court

You can make a legal claim for “fraudulent inducement of employment” if the employer has defrauded you into staying at a job, taking a new job, or accepting a new position. Fraudulent inducement involves intentional misrepresentation. This is more common in employment cases than negligent misrepresentation, where an employer makes false statements carelessly but without intent to deceive. As long as the change is based on the employer’s false statements, you have a claim.

You will need to prove:

• The employer’s intention
• The misrepresentation (whether written or verbal)
• How the promises made you decide to take or leave a job
• How you relied on the false promises
• The amount of damages you suffered (that can be calculated, like losing a certain amount of money or moving your family across the country)

If you think you may be facing a false-promises scenario, keep track of everything that’s been said or done regarding your potential job. Save all job postings, emails, and text messages. If you receive an offer letter, highlight any differences between the job listing and your offer letter.

Send emails to confirm what was said in phone conversations or Zoom meetings. This ensures that everything said is written and agreed to by both sides. If there are any witnesses to your discussion, make sure they get copies of your emails. For legal issues with your current job, keep copies of your performance reviews or other documents that promise promotions, bonuses, etc. Note any dates or deadlines by which you were promised action.

The false promises must be intentional, which can be hard to prove. Employers can say they made a mistake or a misstatement. Without a record of the conversation, an employee can be in a “they said/I said” argument with no proof. You might also have a hard time proving you believed a promise if it is unreasonable or outlandish. A judge is unlikely to believe you took a job after you were promised triple the normal salary for the role or a private jet, for example.

Having a record of the meetings, emails, promises, phone calls, messages, letters, and other communications can go a long way in court to prove your case. Each state has laws governing the recording of conversations without the consent of one or both parties.

Keep all messages and communications from your employer or potential employer. Communications made prior to a job offer that differ from the actual offer may constitute primary evidence. New evidence sources may include Slack conversations, LinkedIn DMs, MS Teams chats, and other intra-office communications.

Should You File a Lawsuit?

You should only consider legal action if you relied on the promises made by your employer or potential employer. In most cases, you do not have a cause of action if a possible employer made extravagant promises, but you turned the job down. However, if you declined other jobs in reliance on this job, you could have a possible claim for that lost opportunity.

You must also be able to show that the offer was made under false pretenses. Having evidence that the employer made a false promise with the specific intention to induce you to take the job can go a long way toward winning your claim.

Making major changes in your life based on promises made can serve as a basis for claiming damages. Examples include moving across the country, leaving school early, or leaving a comfortable position. You have a better chance of succeeding in a false promises lawsuit than if you merely left one job for another comparable job.

Several common elements of successful lawsuits can be found in Lazar v. Rykoff (1996), including :

• False representations of material facts, such as lying about salaries or the financial status of the company: The California Supreme Court upheld the plaintiff’s claim of fraudulent inducement when the defendant concealed facts about the company’s financial troubles and bonus caps
• Intent to deceive at the time the offer is made: The defendant company knew that the promise of long-term employment was a lie and that the plaintiff was being hired as an “at-will” employee, regardless of his job performance
• Detrimental reliance on the promise: The plaintiff left a job and a residence of 20 years to move his family from New York to Los Angeles in reliance on the job offer
• Damages: The plaintiff, who purchased a home in Los Angeles, was terminated two years after accepting employment in violation of the verbal (but not written) terms of his agreement, and was not able to find work in either Los Angeles or New York

Lazar demonstrates that even without a written agreement, an employee can sue for false promises and recover damages for lost wages, lost benefits, moving costs, and other detrimental effects.

False Promises vs. False Advertising

Few things are as irritating as so-called “ghost jobs,” those job listings that seem to exist simply to collect resumes. Almost as bad are companies that rope you in with promises of good jobs and high salaries before interviewing you for entry-level positions and low wages instead.

These ghost jobs may be classified as false advertising. They may fall under the Federal Trade Commission (FTC) and laws against deceptive advertising. If employers post these listings in an effort to conceal their company’s financial straits or to encourage workers to apply and draw workers away from competitors, they could create employment issues. For now, these are not considered false promises in the same way as misrepresentation of salary is.

When To Call an Attorney Over False Promises

If you think your case meets the criteria above, you may be able to recover damages from an employer’s fraudulent promises. An attorney who focuses on employment law will know the specific laws in your jurisdiction and review your situation. They can explain your case’s strengths and weaknesses, the potential relief available to you, and the likely outcome of your case.