Defamation By Reference Creates Serious Liability Exposure For Past Employers

Laura Freeman, former Operations Manager at WEBR Buffalo (1440), settled her gender discrimination lawsuit against Liberty Communications.

Freeman alleged retaliation after she complained about discrimination to HR. The lawsuit, filed in 2022, claimed unpaid wages, overtime, and defamation, which hindered her job search. Freeman sought more than a million in damages.

Liberty Communications denied the claims, stating Freeman's demotion was for legitimate reasons. Both parties will cover their own legal fees. You can read more about it.

Source: https://www.insideradio.com/free/former-buffalo-ops-manager-settles-lawsuit-with-her-ex-employer/article_878c7e46-968b-11ef-8f6d-d3fc78888ca1.html

Commentary

According to the source, the complainant's former employer was accused of "defamation by reference":

[Freeman's] suit also alleged the station willfully [defendant] interfered with Freeman's search for a new job by defaming her to employers in her field, which prevented her from securing employment.

"Defamation by reference" occurs when someone provides a false and damaging statement about another person in the context of a recommendation or reference. This can happen in various scenarios, such as job references, character references, or professional recommendations.

For example, if an employer provides a negative job reference for a former employee that includes false information, and this false information harms the employee's reputation or job prospects, it could be considered defamatory.

The elements for defamation by reference are the same as defamation:

  • The information provided must be untrue.
  • The false statement must cause harm to the person's reputation or career.
  • The statement must be communicated to a third party.
  • The statement must not be protected by any legal privilege.

The final takeaway is that defamatory recommendations are often viewed as a form of retaliation and can have serious liability consequences. Those who provide references should be careful that their statements are accurate and fair.

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