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What Factors will Courts Consider in Determining Inducement?

Whitten and Lublin | Nov 07, 2017

Employers may have their recruiters aggressively pursue highly skilled employees, as this can greatly aid in the success of an organization. This includes making promises in order to entice allure the candidate to accept the job offer. The issue of inducement, however, arises when an employee has been terminated. The courts may award the former employee an increased severance package in the form of notice pay (pay equivalent to the amount of time needed for the employee to find a comparable job) if it is found the employee accepted the job offer due to being induced.

In general, there are a few factors the courts will look at when determining whether an employee was induced. They include:

  1. Whether the former employee was a former business owner before being pursued;
  2. The level of security of the employee’s previous job;
  3. Whether the employee turned down better job offers;
  4. Whether the employee was required to relocate (unless the employee had a history of frequently relocating);
  5. Whether the employee applied for the job or was actively pursued.

Although inducement is not illegal, employers must ensure that the promises made are able to be kept. If a promise that is made was necessary to have the employee accept the offer, it is important that such promises are represented accurately and fulfilled.

The goal of enhanced notice pay is to mitigate the damages suffered by employees while they search for comparable employment. If you are an employee and believe you have been induced, only to have your employment terminated, seek the assistance of an employment lawyer in order to receive fair compensation.