The first was that the statement about money being set aside for her position was false, and that she had relied on it to her detriment. The company's claim that it was unaware of the gravity of its problems until Karen had reported for work was an issue for a jury to decide. A variation on fraudulent hiring occurs when fraud is used to keep an employee from leaving. Jerome stayed, but before long he and some other older employees were subjected to a pay cut and eventually summary dismissal. The court allowed Jerome's claim for fraudulent misrepresentation to go to trial.
Employers can take steps to reduce their exposure to fraudulent hiring lawsuits.
Most of these steps involve close control over the message given to applicants. Using two interviewers at once gives the employer a witness in case of a later dispute over what was said. Communications such as employee manuals, Internet job postings, and written offers of employment should be checked for unintended or unauthorized promises. In some cases, it may be advisable to use a written employment agreement that clearly indicates that its terms supersede any oral statements that may have been made. This is quick and painless, and goes with every grilled meat or fish you can imagine.