Leaving a job voluntarily can be exciting, while losing a job unexpectedly may inspire financial and emotional stress. In either scenario, former employees of any particular company may be pulled back into the challenges of their “old” working life if they believe that an employer has been spreading false statements about them since their departure.
False statements that damage one’s reputation or interfere with future job opportunities can be distressing and financially consequential. Thankfully, under California law, workers may sometimes have the right to pursue legal action for defamation against a former employer when circumstances like this unfold.
Taking action when false statements cause harm
Defamation generally involves false statements presented as fact that harm someone’s reputation. Defamation may take the form of spoken statements, known as slander, or written statements, known as libel. In the employment context, this issue often arises during reference checks, internal company communications or statements made after a worker leaves the company.
For example, a former employer may falsely accuse a worker of theft, dishonesty, harassment or poor performance when speaking to potential employers. If those statements are untrue and cause the worker to lose employment opportunities or suffer reputational harm, legal claims may become possible.
California employers do enjoy certain protections when discussing former employees. In many cases, employers may lawfully provide honest evaluations, discuss job performance or explain why an employee was terminated. The key issue is whether the statements were knowingly false, misleading or made with reckless disregard for the truth.
Defamation claims can become especially serious when employers act out of retaliation or malice. For instance, an employee who previously reported discrimination, wage violations or harassment may later discover false rumors circulating after termination. In some situations, negative statements may be used to discourage the worker from pursuing legal claims or finding new employment.
Workers pursuing defamation claims generally must show that the false statements were communicated to others and caused measurable harm. This harm may include lost job opportunities, financial losses or damage to professional reputation.
Because California employment law and defamation law can overlap in complicated ways, workers should avoid assuming they have no options if a former employer spreads false information. An experienced California legal team can help to provide clarity and support if a worker chooses to take action after better understanding their options.