Employee Relocation Rights and False Representations: California Labor Code Section 970

In California, an employee may proceed with a lawsuit alleging Labor Code Section 970 violations regardless of the employee’s at-will status. California Labor Code Section 970 makes it unlawful for an employer, or the employer’s agent, to knowingly make false representations to entice an employee to relocate regarding:

• (a) The kind, character, or existence of such work.
• (b) The length of time such work will last or the compensation thereof.
• (c) The sanitary or housing conditions relating to or surrounding the work.
• (d) The existence or nonexistence of any strike, lockout, or other labor dispute affecting it and pending between the proposed employer and the persons then or last engaged in the performance of the labor for which the employee is sought.

Violations of Labor Code Section 970 can expose an employer to both criminal and civil liability.

White v. Smule, Inc. (2022) and Labor Code Section 970

In White v. Smule, Inc. (2022) 290 Cal.Rptr.3d 328, Kenneth White accepted a job offer for lead project manager under the belief that the position he was hired for would be a long-term position. During the interview process, the Vice President of Engineering, Alan Shang, told White that he would be reorganizing and restructuring the project management department to run more efficiently.

White was also told that over the course of 1 ½ to 2 years, he could hire new engineers for the company’s expansion. White, who was uninterested in short-term employment, made it clear that he was looking for a long-term role.

White accepted the position on the belief that it would be long-term, and he resigned from his previous job and moved his family from Washington to the Bay Area.

During the interview, White was informed about an office in Bulgaria but was assured that U.S. positions would not be phased out. Despite these assurances, the company dismissed White just 5 months after his hiring, and his position was eliminated. Notably, his dismissal occurred less than 2 weeks after he submitted a long-term plan “to improve Defendant’s product and engineering operations.”

Employer Liability and At-Will Employment Status

At trial, the company sought summary judgment due to White’s at-will employment status, and the judge initially agreed.

However, upon appeal, it was determined that an employer can be held liable for Labor Code Section 970 violations when sufficient evidence suggests that the employer knowingly made false representations during the hiring process, regardless of the employee’s at-will status.

Protecting Employee Rights: Contact TONG LAW

It is important to remember that an employee’s at-will employment status does not shield an employer from liability if they have violated California Labor Code Section 970. At TONG LAW, we exclusively represent employees in employment and labor disputes.