Defamation suits on rise as employers discharge employees.

According to The National Law Journal (4/15, Baldas) reported, “Defamation lawsuits are on the rise in the workplace as employees take on employers over the right to reputation, suing over being labeled as damaged goods after losing their jobs.”

Now, “with the economy forcing so many people out of work, lawyers say the environment is ripe for defamation claims” and “employers are facing mounting pressure over how to treat departing employees, and how to explain the departure without hurting their reputations.”

Employers are concerned “that negative or offensive information will go out the door along with the exiting employee, providing grounds for defamation claims.”