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Employee wins $500K for defamation

Jim Giuliano
by Jim Giuliano
November 6, 2008
1 minute read
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Another reason companies need to complete thorough investigations when they receive complaints about employees:
They could get hit with defamation claims if they believe and act on false allegations.
In one recent case, an employee was fired after her co-worker lodged a complaint with management. He claimed the woman told him she planned to take a gun to work and shoot her fellow employees.
The twist: The woman claimed she never made such a statement. She said the co-worker had sexually harassed her and was trying to get her fired before she could file a complaint.
However, the company not only fired her, but also told police about the alleged threats, leading to her being detained and searched by law enforcement.
The woman sued the co-worker and the company for defamation. A jury took her side and awarded her $500,000.
Cite: Chang-Craft v. Cameron and Alaska Airlines, Inc.

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