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Several U.S. Courts of Appeals have recently decided cases involving the impact of employment application fraud on discrimination and wrongful discharge suits. These cases are initiated by a terminated employee who sues his former employer claiming the termination was discriminatory or in some other way wrongful. What if it is discovered that the employee, during the employment application process, lied about his work or education history? Should this fraud impact the employee’s discrimination or wrongful discharge suit? Terminated employees have argued that they should still be compensated while employers have countered that the employee,because of his fraud, was never rightfully employed and is owed nothing. The U.S. Courts of Appeals, which are one rung below the Supreme Court, have produced conflicting decisions. This paper examines those conflicting decisions and makes recommendations as to how employers can reduce their potential liability from these suits.

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