Can an Employer Sue an Employee?
If your employer is threatened legal action against you, you probably have a few questions. Is it legal for an employer to sue an employee? If so, what can you do to defend yourself against their claim? What type of lawyer do you need?
In this article, we’re taking a closer look at some of these questions so you can prepare.
Can an Employer Sue an Employee?
There is no law in California that prevents an employer from suing an employee.
However, the employer must have an extremely compelling reason to sue in order to succeed – and that does not usually include poor performance or unintentional carelessness. There must instead be some kind of intentional negligence and/or malicious action involved.
Here are five of the most common reasons employers sue employees as well as how you should handle each.
Harassment
Just as a person in a position of authority can harass an employee, so, too, can an existing or former employee harass their employer. Actions might include bullying, insubordinate actions, extremely unprofessional behavior, assault, or abuse that is sexual, physical, or verbal in nature.
It is also quite common for an employer to accuse an employee of harassment if they have been fired, yet continuously try to contact or interfere with the business in some way. This might include calling the business at all hours, showing up unexpectedly, or refusing to respect a ban from the property.
If your employer accuses you of harassment, the most important first step you can take is to document everything. Keep a log of every contact, every interaction, and every conversation; include dates and any relevant notes. Your goal should be to justify every single contact so you can later show you had good reason
Additionally, take care not to engage in any behavior that might be misunderstood or misperceived as harassment. For example, if you are owed pay, it may be better to limit calls to three times per week and/or file a lawsuit against the business rather than calling over and over again until you get a result.
Defamation
Defamation is any action taken that maliciously injures or destroys the reputation of the employer and/or their business. This may include subtle statements (e.g., posting about “how horrible it is to work here) or more obvious accusations and insults (e.g., “Business X doesn’t pay their employees and engages in racism”).
When defaming statements are published (e.g., social media statements or reviews), the law considers it libel instead. However, both of these terms refer to the same core concept: someone engaged in behavior that directly injured reputation.
One of the most important things to know about defamation lawsuits is that they are notoriously difficult to prove. This is because simply saying something unpleasant or negative isn’t enough to qualify the plaintiff’s case. If the information shared is true, it does not qualify as defamation.
Instead, the employer needs to be able to prove that the employee not only knew it wasn’t true (or that it was at least embellished), but also that they made the statement knowing it might harm the business.
Lastly, an employer cannot sue for defamation unless they experience actual loss or damages. They must be able to prove that the defaming or libelous statement negatively affected them in some way (e.g., they lost business). Without any fallout, there are no associated damages to sue for. So, an offhanded comment about the business’s poor ethics as you walk out the door after being fired probably isn’t enough to qualify the employer for a successful outcome.
If you are accused of defamation, the most important step to take is to find a lawyer immediately. Where possible, stop communicating with the business outside of daily work processes – communicate through a lawyer instead. Document everything, including any statements you make or where you shared info.
You can also try to do damage control if you know the incident that caused them to accuse you of defamation in the first place. Make a note of where and when they believe you injured their reputation. If true, try to find evidence and witnesses who can corroborate it. If untrue, consider a retraction and/or removal.
Stealing
When an employee steals from a business, the employer experiences a very immediate and concrete type of loss. Often, it costs them real money to replace the stolen item, even if it is small or inconsequential. This is a particularly strong reason for an employer to sue an employee – especially if there is hard evidence, such as video recordings, that show the individual stealing the item.
Theft can occur on a number of different levels. For example, an employee might engage in petty theft of office supplies, or they might embezzle money from the business instead. More serious crimes include stealing major equipment (like computers), stealing confidential information (e.g., credit card numbers) or stealing trade secrets.
Always remember that it is never okay to take anything from your workplace without explicit permission (in writing, where possible). This is just as true for small items like paper clips and coffee mugs as it is for major equipment, such as vehicles.
It is important to note that stealing is particularly serious in the workplace, mostly because it carries a risk for criminal charges. Furthermore, a successful charge of theft that results in conviction can act as evidence against the employee in a civil court case. Thus, it is in your best interests to secure a lawyer immediately if you are accused of this very serious crime.
Lying
An employer can sue an employee for lying or falsehoods, particularly if the lie told directly impacts the employee’s ability to perform. Lying on a resume is an excellent example of this concept. An employee who claims to be certified in a very specific skill, yet has absolutely no experience at all, can be sued for fraud.
Lying on an application is also fair game, as is making up false references. Both are considered a form of fraud. And while it might seem surprising, it is also possible for an employer to sue a worker who lies about being sick in order to get out of work, especially if their absence negatively impacts the business (e.g., poor sales).
What an employer cannot sue for is a minor lie that has nothing to do with the business and/or its operation. For example, an employer can’t sue you for bragging about the size of a fish you caught at the company Christmas party.
Prevention is far easier than correction, here. Simply don’t lie – not on your resume, not in the line of work, and not to save yourself from criticism. It will almost never work out in your favor. Instead, be upfront, honest, and professional at all times.
If you are already in a situation where you are being accused of lying, try to find evidence to prove what you said was true. Then, contact a lawyer right away. There may be ways to work the issue out with the right legal help.
Negligence
Negligence on the part of an employee is an extremely nuanced reason to sue. There are many grey areas, loopholes, and problems that can arise for both sides. For this reason, it tends to be far less common a case than the others on this list.
First, all employees do have a responsibility to carry out their work professionally, respectfully, and without intentional errors. When this does not happen, either due to malicious intent or inadvertent error, the employer is considered legally responsible for any fallout due to the employee’s actions. If the employer is sued by a third party after an incident, they may opt to sue the employee for compensation.
Here’s an example. Let’s say a hospital hires a doctor, and the doctor later botches a surgery due to being intoxicated. The patient sues the employer for $2 million, who in turn sues the doctor for compensation.
And another: a construction worker is driving a large piece of equipment while talking on a mobile phone. They inadvertently cause an accident, destroying the equipment (which was worth $150,0000). The employer might opt to sue for replacement.
The best first step to handling a negligence case is to contact a lawyer right away; don’t try to handle this one on your own. Negligence cases often come with extremely high monetary demands. Thus, the risk is simply too high.
Also, avoid trying to justify your actions to the employer or prove you weren’t negligent. You might inadvertently give them the information they can use in court. Instead, communicate through your attorney at all times.
Conclusion
If you find yourself in a situation where your employer is threatening legal action against you, you will need legal guidance. For the best results, contact your local attorney referral service to find the best lawyer near you.
An attorney referral service will connect you with a lawyer that has experience handling such issues.
Are you in search for a certified attorney to represent you?
Let us help you find one today!