Legal Question in Civil Rights Law in Washington

Re: employer defamation of character

The risk an employer runs in calling an employee a "liar" in the presence of others is that the employer may be committing the tort of spoken defamation or "slander." If the defamation is in writing it is called "libel."

In general, to establish a defamation case, spoken or written, a plaintiff needs to prove the following four elements:

(1) publication,

(2) of a defamatory statement,

(3) causation, and

(4) damages.

"Publication" is basically communication to a third party. In the employment setting, sometimes there is an issue over whether co-workers are considered third parties or whether they are part of the employer. Resolution of this issue depends on the facts.

A "defamatory" statement is a false factual assertion (to be differentiated from opinion and mere puffery) that diminishes one's character or otherwise tends to lower one's reputation in the community.

"Causation" and "damages" are essential elements of any tort and are linked. Generally, plaintiffs can recover "compensatory" damages that are caused by the tort. "Compensatory" damages are reasonably foreseeable damages that are meant to compensate the plaintiff for the injury, i.e., put the plaintiff back into the same position that he/she enjoyed prior to the injury. Such damages often include medical expenses, mental anguish/emotional distress/pain and suffering, and any pecuniary or "out-of-pocket" losses that are directly attributable to the tort, such as lost income. A plaintiff's attorney fees are generally not recoverable, unless recovery is provided for by statute.

Even if a plaintiff can establish all elements, they do not automatically win. There are defenses available to defendants. Truth, for example, is an absolute defense to any defamation claim (but not to an invasion of privacy claim). Certain proceedings and situations also give rise to qualified or even absolute privileges, e.g. court proceedings/depositions, congressional testimony, and in some states employment references (Oregon).

Terminating an employee for objecting to defamation may give rise to a common law wrongful discharge action.

In regards to your specific situation, while someone at your former employer may have technically committed defamation, your recoverable damages are most likely minimal. Did the statement get you fired or prevent you from getting another job? Did it upset you to the point where it has interefered with your daily routine in any way or cause you to get mental health counseling? These are important questions to ask yourself in deciding whether to incur the cost of pursuing any legal recourse.