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Here's a no-brainer: Be Honest. You never know who'll see your resume on the other end.
I left a private company earlier this year to come to this school (a community college). A woman who had worked at the company faxed in her resume saying she had supervised Department X. (I work on the same floor as HR, so we share the fax machine.) I knew this wasn't true, and I ached to tell HR about it. Turns out I didn't have to -- she was never considered because she didn't submit a cover letter.
Would anyone here have told?
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