As a result of a recent court decision, employers could be facing increased numbers of defamation claims filed by discharged employees. Using a definition of “actual malice” from the case, the court held that even truthful statements may give rise to a libel claim if the plaintiff can prove malicious intent on the part of the speaker.
After an employee of a company was terminated, the executive vice president sent an email to all employees, approximately 1,500 people, informing them that the employee had been fired and giving the reasons for his termination, advising the recipients to consult human resources if they had questions about the tasks that he had previously performed.
The former employee filed suit against the company, alleging among other things, that the email sent by the executive vice president constituted libel. The court concluded that because the legislature had passed the libel statute in 1902, the definition of “actual malice” used during that time period should be the meaning applied to evaluate the libel claim in 2009. The court found that the proper definition to apply was “ill will” or “malevolent intent.”
Although a jury has yet to hear this issue, the ramifications of this decision could be significant for employers. With the current state of the economy and the resulting layoffs, employers may be susceptible to defamation suits, even if the statements made about former employees are true. This can be especially problematic in situations involving negative job references to prospective employers. Given the potential for liability, employers are urged to contact an employment attorney to ensure adequate compliance.
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