California Labor Law: Relocation Woes

Bakersfield, CAThe California Labor Law (labor code section 970-972) states that an employer cannot relocate an employee under fraudulent promises or circumstances. But Sam (not his real name pending a lawsuit) did his homework and filed a breach of contract and relocation complaint against his employer in May, 2008.

In California, you cannot promise an employee continuing employment in another city or state and then, once he is relocated, pull the rug out from under him. Steve worked for a large pest control company that relocated him to Bakersfield from Ventura County—he moved there lock, stock and barrel with his wife and six-month-old baby. "An employer can't promise an employee a relocation bonus and have ulterior motives," says Sam.

Once his family got to Bakersfied, Sam was told that he had to take a reduction in his base salary (he was making $2,400 per month plus commissions). "It was infuriating; my boss told me to park my truck in the yard if I didn't accept a cut in pay. 'If you aren't gonna take $2000 per month, you're fired,' he said. And he said there was no discussion about relocation costs.

I was so frightened; everyone knows about the real estate market crashing and lending institutions going bankrupt. I am in the termite business, which is mainly real estate, so there were no jobs available. I panicked and decided to take my termite operators' license—I was planning for the worst. I had a six-month baby to support and we had just bought a home—I thought we might lose the house."

But Sam's story has a happy ending…

"The licensing process takes six months but I passed the test and I now have my own termite extermination company. I have enough to pay my mortgage and feed my family. On my attorney's advice, I filed a lawsuit against the company but I can't count on the money because it could take a long time. However, I will pursue a suit because I want to win; I don't want my ex-boss to keep doing this to other employees – it is the principal."

Steve realizes that his former employer may get a minimum fine of $50 for a misdemeanor but a civil action could cost his employer a lot more than it would Sam's relocation bonus and a cut in his salary.

The California Labor Law states the following regarding relocation:

970. No person, or agent or officer thereof, directly or indirectly, shall influence, persuade, or engage any person to change from one place to another in this State or from any place outside to any place within the State, or from any place within the State to any place outside, for the purpose of working in any branch of labor, through or by means of knowingly false representations, whether spoken, written, or advertised in printed form, concerning either:
(a) The kind, character, or existence of such work;
(b) The length of time such work will last, or the compensation therefore;

970 is guilty of a misdemeanor punishable by a fine of not less than fifty dollars ($50) nor more than one thousand dollars ($1,000) or imprisonment for not more than six months or both.

971. Any person, or agent or officer thereof, who violates Section

972. In addition to such criminal penalty, any person, or agent or officer thereof who violates any provision of Section 970 is liableto the party aggrieved, in a civil action, for double damages resulting from such misrepresentations. Such civil action may be
brought by an aggrieved person or his assigns or successors in interest, without first establishing any criminal liability.