Can I sue an employee for spreading lies about my company?
Employers can sue employees for defamation. To win, the employer must prove that the statement harms the employer’s reputation, is false and was publicized with the requisite degree of fault. Also, the statement must not be privileged. Courts recognize an absolute privilege for statements made in the course of judicial proceedings. For example, if the employee calls the boss a racist in the complaint, it’s not going to be actionable. A further issue to consider is whether an employer corporation might be considered a public figure. If it is, it will be required to prove actual malice. Despite the ability to sue for defamation, it still may not be advisable. Damages for employers, particularly corporations, are limited and difficult to prove. In Massachusetts, punitive damages are prohibited in all claims of defamation regardless of who the plaintiff is. And while an individual can recover compensatory damages for mental anguish, corporations cannot recover for emotional damages. The co
