Defamation Claims
To state a claim for defamation, an employee generally must allege that: (1) the employer made a false statement concerning the employee; (2) there was a “publication” of the statement to a third party, meaning that it was communicated to one or more persons other than the employee; and (3) the statement caused damage to the employee. If the false statement is written, it is libel; if it is spoken, it is slander.
Truth is a defense to a defamation claim. In addition, most states, including North Carolina, typically hold that internal statements made within a corporation in the context of employee evaluations or as part of employee discipline are subject to a “qualified privilege defense”. However, it should be noted that there are large, potentially risky exceptions to both of these general rules. For example:
- Even the truth might not spare an employer from a jury trial when the facts are in dispute or the evidence boils down to a “swearing match”.
- Employees can defeat a qualified privilege “intra-corporate communication” defense if they can show that the employer’s statement was made with actual malice – i.e., knowledge of the falsity of the statement or reckless disregard for the truth. Actual malice can be inferred from the evidence surrounding the circumstances and the timing of the statement (e.g., the employer states that the employee is discharged for theft before doing any investigation, or an employee shows that the manager who made the alleged defamatory statement was motivated by a personal grudge). Thus, here again, disputed facts can lead to a jury trial on a defamation claim.
