NV Supreme Court Interprets “Employment Luring” Law
The Nevada Supreme Court recently interpreted a little-known Nevada law that prohibits an employer from inducing a worker “to change from one place to another in this state” under false or deceptive pretenses. In Field Effect Security Inc. v. The Eighth Judicial District Court, the Court ruled that this law does not just apply to an employee who changes her residence. It also broadly covers a change in jobs because of someone’s false or deceptive pretenses.
The employer in this matter hired Eric Anderson for a marketing and sales role. Anderson had been employed by Field Effect’s competitor. Anderson did not move his residence to take the job with Field Effect. He contended that although he was hired by Field Effect for an Account Lead position, he was actually placed in an entry-level position.
Anderson filed a lawsuit against Field Effect under Nevada Revised Statutes 613.010, alleging that Field Effect lured him away from its competitor with false promises about his position and compensation structure. Field Effect argued that this law applies only to employees who physically relocate their residence to accept new employment.
Enacted in 1936, NRS 613.010(1) makes it unlawful for an employer “to induce, influence, persuade or engage workers to change from one place to another in this state, . . . through means of false or deceptive representations, false advertising or false pretenses concerning” the terms and conditions of employment, including compensation. The law does not define “change from one place to another in this state.” But Section 3 gives a worker the right to file a lawsuit for damages sustained because of false or deceptive representations, false advertising or false pretenses “used to induce the worker to change his or her place of employment, or place of abode . . . .”
Because a court must consider the law “as a whole,” the Nevada Supreme Court determined that “change from one place to another” encompasses both a “place of abode” and a “place of employment.” The Court disagreed with two Nevada federal cases which narrowly applied NRS 613.010. And, finding the language clear, it also declined to consider the Nevada Legislature’s intent in adopting NRS 613.010.
Under the Court’s interpretation, anytime an employee changes jobs, NRS 613.010 is available as a remedy if an employer makes false or deceptive representations about the job’s terms and conditions of employment. While it has always been important for an employer to be accurate and truthful in advertising and representing the terms and conditions of a position, employers should now be extra cautious because NRS 613.010 also provides that any person who violates this law is guilty of a gross misdemeanor.
We encourage you to take a moment to read this unique law and consider whether any changes are needed to your hiring practices and documents. KZA attorneys are always available to help you analyze and apply Nevada law. If you have questions or would like us to review your offer letters or other hiring materials, please contact us.
KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.