Defamation

The law prohibits employers from lying or making false accusations about their employees to other companies or people. If an employee’s reputation is damaged as a result, he or she may be able to sue the employer for defamation. Defamation may occur where a manager makes false statements about an employee in front of co-workers, or when an employer provides false information to a potential employer seeking a reference.

Some examples of defamation are:

• Your boss tells everyone at work that you did something wrong (for instance, stole from the company), even though this is not true.
• You are looking for a new job, and your current or former employer tells your potential employer things about you that he or she knows are not true, or that are only half true, and that are damaging to you.
• You are looking for a new job, and your current or former employer tries to sabotage your job search by circulating false rumors about you to potential employers.