One of the many stressful situations that business owners can find themselves in is when a former employee disparages the company. Their words and conduct can harm the business' reputation and tarnish its brand for years, hurting its revenue by deterring potential customers.
The internet defamation lawyers at the Katz Law Group have extensive experience protecting businesses in central Massachusetts from defamatory conduct of current and prior employees.
What is Employee Defamation?
In Massachusetts, employee defamation is the publication of a statement of fact by an employee that is harmful to the business' reputation and that can be proven to be false. Defamatory statements can be “published” orally, in which case it is slander, or in writing, in which case it is libel. Former employees can commit employee defamation by telling other people lies about your company, writing false information in reviews, or disparaging your company on social media or elsewhere on the internet.
Employee defamation can be particularly difficult to deal with because the former employee's status can mean they have inside information about your company, and can also give the public the perception that they know how your business operates. This can lend them credibility that makes their defamatory conduct more persuasive to potential customers. What the former employee says can seriously hurt your business' reputation and cause thousands of dollars in lost revenue.
How to Handle a Former Employee's Defamatory Conduct
The best reaction depends on the situation, the business' interests, what the former employee is saying, and how many people are hearing it. According to business defamation lawyer David S. Katz, though, “Generally, a slowly escalating response is the most appropriate. Starting with a demand that the former employee stop the libel or slander, escalating to a cease and desist letter that threatens litigation, and finally escalating to the litigation, itself.”
In the worst cases, though, it can help to have a crisis management attorney on hand to resolve the matter.
How to Prevent It
The best way to handle a former employee's defamatory conduct is to avoid it entirely. The best way to do that is to deter the employee from speaking out against the company by limiting their right to do so in the employment contract. This generally includes provisions in the employment contract or severance agreement like a:
- Non-disclosure agreement
- Non-disparagement agreement
- Non-solicitation agreement
- Social media policy
Consulting with an experienced Massachusetts employment lawyer can ensure that you take the steps necessary to mitigate the risks of being subjected to employee defamation.
Massachusetts Defamation Lawyers at the Katz Law Group
If a current or former employee is saying bad things about your business that have no basis in reality, you have legal recourse. Call the Katz Law Group in central Massachusetts at (508) 480-8202 or contact them online.
