Law;

 

Companies that bad-mouth former employees on job references aren't the only ones that have to worry about defamation actions. So do those that allow loose and malicious talk about current employees. In a growing number of cases, employees are charging their employers with defamation of character based on false accusations of everything from dishonesty and drunkenness to insubordination and incompetence. "Employers are scared to death because of punitive damages and jury trials," says Paul H. Tobias, of Tobias & Kraus, in Cincinnati.

The problem can arise whenever an employee feels wronged by the accusations of a boss. To win a case, the employee must prove that the statement was false; that it was heard by a third party; and that it was made negligently or intentionally. This does not mean companies can't comment on performance. The courts recognize that performance reviews are an essential part of running a business. But that privilege does not extend to comments that can be shown to have been made with malice.

To reduce the risk of a defamation suit, be sure to:

* investigate carefully before making any serious charge;

* gather ample evidence to back up any charge; and

* tell the information only to those who need to know.