Misrepresentation in Recruiting: Labor Code Section 970 Explained

Introduction

California Labor Code section 970 makes it unlawful for employers to knowingly make false representations about a job’s nature, duration, compensation, or related conditions to persuade someone to relocate for work. This powerful protection applies whether a move is short or long, temporary or permanent.

Essential Elements of a Section 970 Claim

To prevail under section 970, an employee must prove:

1. The employer made a knowing false statement about one or more of the following:

   (a) Type or existence of work; Duration of employment;

   (b) Pay or compensation;

   (c) Sanitary or housing conditions;

   (d) Existence of strikes, lockouts, or

   (e) labor disputes;

2. The employer intended for the employee to rely on the false statement.

3. The employee reasonably relied on the misrepresentation, moved their residence for the job, and suffered financial harm.

See Finch v. Brenda Raceway Corp. (1994) 22 Cal.App.4th 547, 553; Eisenberg v. Alameda Newspapers, Inc. (1999) 74 Cal.App.4th 1359, 1392.

Why Does Section 970 Matter?

Originally meant to protect migrant workers, section 970 now shields all employees from deceptive recruiting—whether they move across the state or just a few miles. Employers are exposed to substantial liability for knowingly misleading candidates (Tyco Indus., Inc. v. Superior Court (1985) 164 Cal.App.3d 148, 155).

Remedies

Employers who violate section 970 may be subject to both criminal and civil penalties.

Employees can recover actual damages, plus double damages in many cases (Lab. Code, § 972; Seubert v. McKesson Corp. (1990) 223 Cal.App.3d 1514, 1523).

Violations may result in misdemeanor charges (Lab. Code, § 971).

Best Practices for California Employers

• Represent all job details honestly during recruitment.

• Avoid exaggerating or misrepresenting available work, job security, or compensation.

• Document all recruitment materials and communications for transparency.

Bottom Line

California employers must recruit truthfully—knowingly false representations that induce relocations carry serious legal and financial consequences. Section 970 applies to any substantial change of residence, regardless of distance.

Citations

Lab. Code, §§ 970–972; Tyco Indus., Inc. v. Superior Court (1985) 164 Cal.App.3d 148; Finch v. Brenda Raceway Corp. (1994) 22 Cal.App.4th 547; Eisenberg v. Alameda Newspapers, Inc. (1999) 74 Cal.App.4th 1359; Collins v. Rocha (1972) 7 Cal.3d 232; Seubert v. McKesson Corp. (1990) 223 Cal.App.3d 1514.