PHR Human Resources

Category - PHR

During an interview, Fae was told that there were day care facilities available on site for children up to 6 years old. Based primarily upon this fact, Fae accepted the job offer, in the meantime rejecting several others in which day care facilities were not available. Upon starting her new position, Fae learned that the day care facilities were actually still under discussion and were very far from being a reality for the organization. What is this an example of?
  1. Fraudulent misrepresentation
  2. Negligent training
  3. Risk management
  4. Negligent hiring
Explanation
Answer: A - This scenario is an example of fraudulent misrepresentation.

Key Takeaway: Fraudulent misrepresentation occurs when an employer misrepresents a company, position, benefits, etc. The misrepresentation does not always have to be an actual statement, but can also include insinuations, gestures, or even not answering employee questions. Under the common law tort claim, an employee is entitled to sue an employer for damages caused by such false representation.
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