Recognizing Employer Fraud and Misrepresentation

When an employer deceives employees or potential employees, whether about the terms of employment, compensation, or other critical aspects of the job, it constitutes fraud or misrepresentation. Employees who are victims of such practices often suffer financially and emotionally and may also face unjust termination or retaliation for reporting the misconduct.

Employer fraud and misrepresentation can manifest in various ways. Some common examples include:

1. False promises of compensation — An employer may promise a certain salary, bonus, or benefits package during recruitment, only to provide something less favorable once the employee is hired.
2. Misleading job description: — An employer might exaggerate the responsibilities, advancement opportunities or job security associated with a position to lure candidates.
3. Deceptive financial reporting — Employers may falsify financial statements to deceive employees about the health of the company, potentially leading to employees making misinformed decisions about their career.
4. Unsafe working conditions — Misrepresenting the safety of a work environment can lead to employees unknowingly putting their health and lives at risk.

Employees who encounter these or other deceptive practices may feel trapped or unsure of how to respond, especially if they fear retaliation from their employer.

In New Jersey, employees who uncover fraud, misrepresentation or other illegal activities in the workplace are protected under the Conscientious Employee Protection Act. CEPA is one of the most robust whistleblower protection laws in the United States, providing extensive safeguards for employees who report or refuse to participate in illegal activities.

CEPA protects employees from retaliation if they disclose or threaten to disclose their employer’s fraudulent practices to a supervisor, public body or other appropriate authority. Retaliation can include termination, demotion, salary reduction, or any other adverse employment action. Under CEPA, employees are also protected if they testify or cooperate in an investigation or hearing related to the employer’s misconduct.

Employees who believe they have been victims of employer fraud or misrepresentation have the right to take legal action. In addition to remedies under CEPA, New Jersey employees can file civil lawsuits against employers for fraudulent or deceptive practices. Remedies may include compensation for lost wages, emotional distress and, in some cases, punitive damages.

To pursue a claim, employees must act promptly and gather as much evidence as possible to support their case. This may include documentation of the fraud or misrepresentation, communications with the employer and records of any retaliation faced after reporting the misconduct.

If you spot fraud or misrepresentation in your workplace and believe it has affected you harmfully, you may be able to bring legal action. Deutsch Atkins & Kleinfeldt, P.C. in Hackensack, New Jersey, has experience litigating to protect employees’ rights. Call us at 551-245-8894 or contact us online to schedule a free confidential consultation.