Can I fire employee who tells lies about me?

My husband and I own a telecommunications office. We have 40 employees. I have recently been informed by one of my managers and several employees that one of my employees is inventing stories about our private life. This person is claiming to be having an affair with one of us. This person is openly saying this in front of other employees. What this person is saying is completely false. However, neither my husband nor I have directly heard this person. My question is, is this defamation? What are my rights as an employer? Can I fire this person because of defamation of character?

Rita Risser's Response:

If the person is saying something that is untrue, generally that is defamation. First question I have is whether in fact it is untrue. What you may have here is the classic "Bill Clinton bind;" that is, the person is saying she is having an affair with your husband, and he is denying it to you, his wife. So if the statements are true, you have other problems, but not defamation.

The first thing that needs to happen is an investigation, and you are the last person in the world who should do it. You need an impartial person, probably an outside lawyer, perhaps a senior (unrelated) member of your Board of Directors, or some other independent person to conduct the investigation. The investigator should then talk to the person who is accused of making these statements. If she admits making them, and admits they are false, then disciplinary action is appropriate. If she says it is true, then the investigator must hear your husband's side of the story and decide who to believe. If she denies making the statements, the investigator can speak to the witnesses. If the investigator believes the witnesses, the employee again could be disciplined.

Whether you should fire this person depends upon a number of factors. You really need a local attorney to help you decide what to do in this case.

Best of luck to you.

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