Federal MP Clive Palmer is being sued by a former candidate of his Palmer United Party (PUP) for $4.6 million.

Bill Schoch has lodged a Supreme Court claim alleging an employment contract with Mr Palmer, who is now the Member for Fairfax, was "misleading and deceptive".

Mr Schoch unsuccessfully stood as a PUP candidate in the seat of Fisher on Queensland's Sunshine Coast at the last federal election.

He was also the former manager of Palmer Coolum Resort.