Defamation in the Workplace: When Office Talk Becomes a Lawsuit

"He was fired for stealing." "She slept her way to the top." "Don't hire him—he's unstable." Workplaces are breeding grounds for rumor and reputation destruction. But when does workplace gossip cross the line from unprofessional behavior to actionable defamation? When can you sue a former employer for a damaging reference? When is a coworker's malicious lie worth pursuing in court?

Defamation claims in the employment context are common—but they're also difficult to win. This article explains the elements of defamation under Oklahoma law, the special protections that apply in workplace settings, and how to evaluate whether you have a claim worth pursuing.

What Is Defamation?

Defamation is a false statement of fact, published to a third party, that damages someone's reputation. There are two forms:

Slander

Spoken defamation. Verbal statements made to others that harm your reputation.

Example: A supervisor tells other employees in a meeting that you embezzled company funds (when you didn't).

Libel

Written defamation. Statements in writing, email, social media posts, text messages, performance reviews, or other permanent form.

Example: A former employer sends an email to a prospective employer stating you were fired for sexual harassment (when you weren't).

The Elements of a Defamation Claim

To succeed on a defamation claim in Oklahoma, you must prove:

1. False Statement of Fact

The statement must be false. Truth is an absolute defense to defamation.

The statement must also be a statement of fact, not opinion. "John is a thief" (fact—he either stole or didn't) is different from "John is a jerk" (opinion—subjective and not provable).

The line between fact and opinion can be blurry. Courts look at:

• Whether the statement can be objectively verified
• The context in which it was made
• How a reasonable listener/reader would interpret it

2. Publication to a Third Party

The false statement must be communicated to someone other than you. If your boss calls you a thief in a private conversation with only you present, that's not defamation (though it might be actionable on other grounds).

"Publication" in defamation law means communication to any third party—it doesn't require newspaper publication or wide distribution.

3. Fault (Negligence or Malice)

The speaker must have been at fault. For private individuals (most employees), you must show the defendant acted negligently—they failed to exercise reasonable care to verify the truth of the statement.

For public figures or matters of public concern, you must show actual malice—the defendant knew the statement was false or acted with reckless disregard for its truth.

4. Damages

The false statement must have caused you harm. This can include:

• Loss of employment or job opportunities
• Damage to professional reputation
• Emotional distress
• Humiliation and embarrassment
• Loss of relationships

Defamation Per Se: When Damage Is Presumed

Some statements are considered so inherently harmful that damage is presumed—you don't need to prove specific harm. These are called "defamation per se."

In Oklahoma, statements are per se defamatory if they falsely accuse someone of:

1. Committing a Crime

Especially a crime involving moral turpitude (theft, fraud, violence, sex offenses).

Example: "She was arrested for embezzlement."

2. Having a Loathsome Disease

Historically included venereal diseases; less common in modern claims.

3. Unchastity or Sexual Misconduct

Particularly relevant in #MeToo-era workplace disputes.

Example: "He sexually harassed three employees."

4. Unfitness in Profession or Trade

Statements attacking someone's professional competence in their specific occupation.

Example: Telling clients that a CPA "doesn't know basic accounting."

If the statement falls into one of these categories, you can recover damages without proving specific economic harm—though proving actual harm will increase your recovery.

The Qualified Privilege Defense

This is the biggest obstacle in workplace defamation cases.

What Is Qualified Privilege?

Employers (and others) have a qualified privilege to make statements about employees to people with a legitimate interest in the information—even if those statements turn out to be false.

This privilege exists because employers need to be able to discuss employee performance honestly without fear of being sued over every negative comment.

When Does Qualified Privilege Apply?

• Performance evaluations discussed with HR, management, or the employee
• Internal investigations of misconduct
• References provided to prospective employers
• Disciplinary discussions among managers who need to know
• Termination decisions communicated to those involved

When Is the Privilege Lost?

The privilege is "qualified," not absolute. It can be lost if the defendant:

1. Acted with Actual Malice

They knew the statement was false or made it with reckless disregard for its truth. Mere negligence doesn't defeat the privilege—you need to show intentional or reckless falsity.

2. Published Beyond the Privilege

They shared the information with people who had no legitimate need to know.

Example: Your manager tells the entire break room you were fired for theft, when only HR and the termination decision-makers needed to know.

3. Had an Improper Purpose

They made the statement for personal reasons (revenge, jealousy) rather than legitimate business purposes.

Employer References: A Special Problem

The Typical Pattern

You apply for a new job. The prospective employer calls your former employer. Your former employer says something negative. You don't get the job.

Can you sue?

Oklahoma's Reference Immunity Statute (40 O.S. § 61)

Oklahoma provides statutory immunity to employers who provide job references, making these claims particularly difficult:

An employer who discloses information about a current or former employee to a prospective employer of the employee shall be immune from civil liability...

This immunity applies as long as the employer acts in good faith—meaning without knowledge that the information is false or without reckless disregard for its truth.

What This Means in Practice

• Former employers are protected when they verify employment dates, positions, and basic job history
• They're protected when discussing performance issues, reasons for termination, or eligibility for rehire
• Protection is lost only if they knowingly lied or acted with reckless disregard for the truth

Why Many Companies Say Nothing

Despite the legal protection, many companies have adopted "dates and title only" reference policies. Why?

• Lawsuits are expensive even when you win
• Proving "good faith" requires litigation
• Corporate risk managers prefer eliminating the exposure entirely

This doesn't mean all companies follow this policy—many still provide substantive references.

Defamation by Coworkers

Not all workplace defamation comes from management. What about a coworker spreading lies?

Coworker Liability

Coworkers can be personally sued for defamation. They don't share the employer's qualified privilege unless they were speaking in their official capacity about matters within their authority.

Example: A coworker tells people at a party that you were fired for stealing. The coworker has no privilege—this is personal gossip, not official business communication.

Employer Liability for Coworker Defamation

Employers are generally not liable for a rogue coworker's defamatory statements made outside the scope of employment. However, if the employer:

• Ratified the statement (management heard the lie and repeated it)
• Failed to correct a known false statement
• Created a hostile environment through repeated defamation

...some liability theories may apply.

Social Media and Online Defamation

The internet has amplified defamation risks. False statements on:

• LinkedIn
• Facebook
• Twitter/X
• Glassdoor reviews
• Industry forums

...can all constitute actionable defamation if the other elements are met.

Anonymous Posters

If the defamer is anonymous, you may need to subpoena the platform to identify them before you can sue. This adds cost and complexity but is sometimes the only option.

Platform Immunity (Section 230)

The platforms themselves (Facebook, Glassdoor, etc.) are generally immune from liability for user-generated content under Section 230 of the Communications Decency Act. You must sue the person who made the statement, not the platform hosting it.

Damages in Defamation Cases

Compensatory Damages

• Lost wages (if you lost a job because of the defamation)
• Lost business opportunities
• Harm to professional reputation
• Emotional distress and humiliation

Presumed Damages (Per Se Cases)

If the defamation falls into a per se category, damages are presumed and you can recover a meaningful amount without proving specific economic loss.

Punitive Damages

If the defendant acted with actual malice (knowing the statement was false), punitive damages may be available to punish the conduct and deter others.

Practical Considerations

Defamation Cases Are Hard to Win

Between truth as a defense, qualified privilege, and the reference immunity statute, employers win most workplace defamation cases. You need strong evidence that:

• The statement was provably false
• The defendant knew it was false or acted recklessly
• The statement caused real, documentable harm

Investigate Before Filing

Before you conclude you were defamed, investigate:

• What exactly was said? (You need the specific words, not paraphrasing)
• Who said it, and to whom?
• Is it actually false? (If there's any truth to it, your case is weak)
• What harm can you prove?

Consider the Cost-Benefit

Defamation lawsuits are expensive and emotionally draining. Consider:

• How much provable damage did you suffer?
• Can you prove the statement was false and made with requisite fault?
• Is the defendant someone who can pay a judgment?
• Will the lawsuit cause more reputational harm than the defamation itself?

Sometimes, moving on is the better choice—even when you were wronged.

Frequently Asked Questions

Can I sue over a bad performance review?

Rarely. Performance reviews shared appropriately (with management, HR, the employee) are protected by qualified privilege. Unless the reviewer knowingly included false statements or shared the review with people who had no business seeing it, you likely don't have a claim.

What if my employer says I was "terminated for cause" when I resigned?

If technically false (you resigned), this could be defamation—but the practical impact matters. If you weren't denied a job because of it, proving damages is difficult.

Can a former coworker post lies about me on LinkedIn?

Yes, you can sue for online defamation. The challenge is proving damages and identifying whether the statement is fact (actionable) or opinion (not actionable). "He's a terrible person" is opinion. "He was fired for embezzlement" is fact.

What should I do if I think I'm being defamed?

Document everything. Get the specific words used, who said them, and who heard them. Consult an attorney before taking action—a demand letter or lawsuit can backfire if not handled properly.

Can my employer be sued if they refuse to give any reference?

No. Employers have no legal obligation to provide references. A "no comment" policy is their safest approach and is not actionable.

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Workplace defamation cases occupy a difficult space: the wrong is real, but the legal hurdles are high. The qualified privilege protects most employer communications, and Oklahoma's reference immunity makes bad-reference claims especially challenging. But when an employer or coworker crosses the line into knowing falsehood, the law provides a remedy.

At Addison Law, we evaluate potential defamation claims carefully—we won't encourage a lawsuit that won't succeed, but we'll fight aggressively when the facts support it. Contact us for a candid assessment of your situation.

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This article is for general information only and is not legal advice.