Can Employees Sue Supervisors Over Workplace Gossip and Internal Investigations?

picture to accompany a blog post about workplace defamation lawThe workplace can be…difficult. Personalities clash; competition abounds; people talk. Which raises the question: What are the legal ramifications of a boss gossiping about an underling in the hopes of uncovering pink-slip-worthy dirt? What if the investigation is fruitless? Can the employee file a defamation lawsuit in response?

Can An Employee Sue A Boss Over An Internal Investigation?

Can the target of a fishing expedition successfully sue their superior for defamation? It depends. Each case is different and small factors can dramatically affect the outcome.

That said, let’s deconstruct a recent Arizona defamation case involving a supervisor defendant and employee plaintiff, wherein the supervisor ultimately won on privilege grounds.

Expense Reports and Deleted Emails Lead to Office Investigation

An Arizona government office was dealing with some internal strife. A supervisor allegedly suspected a supplicant of inappropriately erasing important emails and exploiting an expense account.

In defense, the underling argued that he’d done nothing wrong, as he’d backed up the emails before erasing and didn’t misuse an expense account.

Office Probe Produces Nothing

Fortunately for the staffer, the probe proffered nothing. So, the staffer filed a defamation lawsuit over the inquiry.

The employee averred purposeful abuse of process on the part of his employer, and accused the honcho of defamatory acts executed as part of an orchestrated attempt to embarrass.

Defendant: “I’m Allowed To Investigate Subordinates, Even If I’m Wrong! It’s Called Privilege, And I Have It!”

In defense of the defamation charge, the supervisor argued privilege. He contended that in a professional environment — especially a governmental one— higher-ups reserve the right to explore suspicions of workplace misconduct regardless of whether or not they’re proved baseless.

When the suit first hit, the defendant claimed immunity by way of privilege, but a lower court disagreed, allowing the case to proceed.

An appeals bench, however, recently overturned the ruling, reasoning that the supervisory body had every right to investigate any suspicions of wrong-doing.

Speak With An Arizona Defamation Lawyer

Are you struggling with a  reputation attack? Has a competitor or rival maliciously – and falsely – dragged your name through the mud? If yes, legal remedies are available. Get in touch, we have the answers to your questions.

Clearing your good name may be a quicker process that you think.