A California Court of Appeals decision confirmed that a California employer might be liable in the event that an employee agrees to relocate to accept a new job when the employer’s description of the type or character of the job was misleading.
In Kenneth Allen White v. Smule, Inc., the Court of Appeals reversed a trial court’s decision to grant summary judgment in favor of the employer. This was after the trial court found that an at-will employee could not rely on an employer’s long-term employment guarantees. Based on what happened in connection with this case, the Court of Appeal considered that although an employee cannot relocate with the expectation of long-term employment, an employee should be able to rely on an employer’s statements regarding other matters of the offer of employment, including the type and nature of the work, even when these are potentially false.
The verdict reached by the Court of Appeal is supported by the provisions of section 970 of the California Labor Code. This section prohibits employers from inducing an employee to transfer and accept employment by deliberately misrepresenting the job’s type, nature, existence, or duration.
The Court of Appeals held that an employer may not cite the employee’s voluntary decision as the only defense to a claim under section 970. However, even in the context of an employee making a voluntary decision, an employer would violate section 970 by misrepresenting job functions. Some characteristics that may be mislisted are job title, reporting structures, compensation, hours of work, benefits, or other terms and conditions of employment.
Employers can mitigate the risk of an employee filing a Section 970 claim by thoroughly evaluating staffing needs before submitting an offer of employment. Additionally, the employer must detail in writing the conditions of employment, including a detailed description of the proposed tasks. This can help an employee make a better-informed decision, something more productive in the long run for both parties.