Wrongful Termination: Plans to Defraud

Terminations of employment that are carried out as a part of a plan to defraud are wrongful termination.  Fraud is against public policy in the State of California, and is not a foreseeable part of an employment relationship. The Lazar Court remarked there is a "public interest" in pursuing the "policy objectives" underlying an action for misrepresentations. It is also declared fraud if an applicable public policy supporting a Tameny-styled wrongful termination cause of action.

Examples of terminations that are carried out as part of a plan to defraud include hiring an employees with promises of long term employment when the employer knows they are merely hiring the employee to pick their brain, and often divulge trade secrets; making misrepresentations about the financial health of the employer when the employer knows they may not be able to afford the employee's salary very long; firing an employee because they have complained of fraud being carried out towards customers, the government, or the public; firing an employee to avoid paying a wage due, including a large commission or bonus that is due.