Can You Sue Your Employer for Slander and Defamation?

An employer’s negative statements about you can seriously impact your personal and professional reputation. You could get turned down for a new position, be passed over for a promotion, or lose your job. If your employer knowingly or recklessly made false statements about you and you were harmed as a result, you can sue them for defamation of character.

This article shows how to prove a defamation claim and situations when defamation comes up in employment. Understanding your employees’ rights is essential to get the best outcome in a defamation case.

How To Prove Defamation

There are two forms of defamation. Libel is written defamatory statements, including in newspapers, magazines, websites, etc. Slander is spoken defamatory statements. With either form, there are four requirements to prove a defamation claim.

Falsehood

The first requirement is that someone made a false statement of fact about you. There are two important points about falsehood. You can sue someone for making a false statement of fact about you but not for expressing their opinion about you. Truth is one of the primary defenses against defamation. If a statement is true, it isn’t defamatory, regardless of how unflattering or harmful it may be to your reputation.

Statements of opinion are protected under the First Amendment. Employment law attorney Christopher Lenzo explains the difference this way: “Someone saying ‘You’re a jerk’ or ‘You’re a bad employee’ — that is an opinion in the eye of the beholder. Now, if someone says, ‘You’re a bad employee because you’re late to work every day,’ that’s a statement of fact that we can verify.”

While it might seem simple, parties often dispute the difference between fact and opinion in defamation cases. The person suing says someone made a false statement about them, while the person being sued says they were just expressing their opinion.

Sometimes, people make factual statements sound like opinions. For example, they might say, “I believe Sam robbed the convenience store last week.” Is this a statement of fact or opinion? What is the context? The intention? The exact legal line between fact and opinion can be unclear and varies by jurisdiction. An employment law attorney with experience in defamation cases can help you understand the legal requirements in your state.

Publication

The second requirement is showing that the person published or communicated their false statement about you to another person. Essentially, this means that the person made the defamatory statement to someone else instead of keeping it to themselves.

This requirement can be tricky in the employment context. “Because performance evaluations are internal, there might be a question of whether the statements were published to a third party,” Lenzo says. “The argument might be: This statement is being made by agents or employees of the employer to agents or employees of the employer, and therefore it was never published to a third party.”

Fault

The third requirement is showing that the person is at fault for making the false statement. They didn’t just make a false statement about you, but they did it in an inappropriate way. In defamation law, the standard for proving fault depends on the victim of defamation.

For private individuals (like most employees), the alleged defamer has to be negligent when they make the defamatory statement. To be negligent means the defamer didn’t use reasonable care to determine if the statement was true or false before saying it. Maybe they didn’t take the time to check their facts or how reliable their source was. They could have verified the false information but didn’t.

In the case of public figures such as a politician or celebrity, the alleged defamer had to either know the statement was false when they made it, or show reckless disregard for the truth or falsity of the statement. This test is known as the actual malice test and is usually more difficult to prove than negligence.

Unprivileged

The fourth requirement is showing that the defamatory statement was unprivileged. Unprivileged means the alleged defamer didn’t have the right to say it. Generally, employers have the right to disclose information about their employees to prospective employers or other parties with a legitimate interest (such as co-workers doing employee reviews). This right is known as qualified privilege. “Courts generally apply qualified privileges where there’s some form of communication that is either necessary or should be promoted,” Lenzo says, such as an employer providing an employment reference.

Lenzo adds that there may be some contexts in which courts don’t want to protect employers’ speech about employees. For example, “Courts want an employer to be able to give a candid employment reference. They don’t want an employer to just randomly assassinate your character in contexts that don’t serve any social or public purpose.”

In many states, job reference immunity statutes protect employers’ qualified privilege. Employers are presumed to act in good faith when they share information about their employees with prospective employers, even if some information is negative. The presumption of good faith is lost if the employee can prove the employer had actual malice:

• The employer knowingly made the false statement; or
• The employer recklessly disregarded the truth or falsity of the statement

The evidence required to show actual malice varies by state. In some states, you need a preponderance of the evidence. In other states, you need clear and convincing evidence. Actual malice typically applies to defamation of public figures. It is harder to prove than negligence. You can think of employers’ qualified privilege as bringing the higher standard typically used for public individuals into employment defamation.

Harm

The last requirement is showing that the defamatory statement harmed your reputation. Showing harm to your personal or professional life can be difficult, but there are a few options.

In some cases, you can show defamation per se. Defamation per se means that the false statement was so bad that it couldn’t help but harm your reputation. For example, if an employer falsely said that you stole from the company, you engaged in sexual harassment, or you have a criminal record, you may have a case of defamation per se. These types of statements clearly damage your reputation.

Depending on your situation, other types of damages include:

• Nominal damages. A small amount awarded when you can show defamation per se when there are no actual damages.
• Actual damages. Compensation for harms you suffered because of the defamation, including emotional distress. Actual damages can be for past and future injuries, such as lost wages or loss of earning potential.
• Special damages. Compensation for a specific financial loss or outcome from defamation, such as losing your job or a promotion.
• Punitive damages. These damages punish the person who defamed you in especially outrageous incidents of defamation.

Defamation in Employment

Here are two situations where defamation most often comes up in the employment context:

Employment Reference

You are applying for a new job and ask your former employer for a reference. Your former employer agrees and speaks with the prospective employer. In their conversation, your former employer shares negative information about you. As a result, the prospective employer doesn’t give you the new position.

Employers generally have the right to share information about former employees with a prospective employer. Employers are presumed to be acting in good faith. To prove defamation, you will have to show that the employer made a false statement about you and did so either knowingly or recklessly. You can then show the harm you experienced (not getting the job). In some cases, you may be able to show defamation per se, depending on the employer’s false statements.

Employment Review

You are up for a promotion, and management conducts an employee review. Management relies on reports your supervisor wrote. You end up not getting promoted. You will need to show that you lost the promotion because of what your supervisor said about you in their report. Then, you will need to show that the negative things your supervisor said were false and that they made them knowingly or recklessly.

Employee Options Besides a Defamation Lawsuit

Employer defamation cases can be very hard to win. Lenzo says that in over 25 years of representing employees, “I don’t think I’ve ever handled a defamation case for an employee.” The actual malice standard in employment defamation is difficult to prove. Lenzo cautions employees that they may not succeed with a defamation legal claim. Plus, unless an employee has experienced some “demonstrable reputational harm that has had some real significant economic impact,” it can be hard to get a defamation lawyer to take your case except on an hourly basis, which can be costly.

So, what other options do employees have besides a lawsuit? “If an employee gets a performance evaluation that they think is unjustified, particularly if it includes inaccurate statements of fact, it’s important for them to rebut that in a timely fashion, preferably in writing,” Lenzo says.

“We as lawyers tend to assume the worst of people. But there are supervisors or human resource people or other people in management who are decent human beings, and if an employee points out a problem about unfairness or inaccuracy in a supervisor review, they will do something about it.”

Finding the Right Attorney for Your Needs

Getting legal advice from an experienced defamation attorney is essential. Many attorneys provide free initial consultations to prospective clients. These meetings allow the attorney to hear the facts of your case and so you can determine if the attorney meets your needs.

To see whether an attorney is a good fit, ask informed questions such as:

• What is your fee, and what billing options do you offer?
• What are the expenses involved in suing an employer?
• What is your experience as an employment lawyer?
• Do you have experience with workplace defamation cases?
• Is legal action the best strategy against my employer?
• What is the statute of limitations on a defamation lawsuit?
• What are my state’s laws and legal standards governing defamation?
• What kind of damages could I get in my case?

Visit the Super Lawyers directory to find an employment law attorney in your area.