Human Resource Blog

Employee Slander

I have a former HR employee who was terminated for walking out. She has continued relationships with current employees since she was terminated. It appears that she is sharing information with these current employees —  confidential information enclosed in other employees personnel records. She continues to gossip with those who are currently employed with our company. Can a current employee sue the former HR employee for slander or breech of confidentiality of their personnel records? What, if anything, can we as an employer do to protect our current employees from this former HR employee releasing information about them to current employees that she still has relationships with after her termination?

Thank you for considering my questions.

This is a thorny issue. As much as we would like to believe that all HR pros behave ethically, there are a few exceptions — and your former employee seems to be one.

Unfortunately, as an employer, you do not have a great deal of recourse against a terminated employee. Still, you should do what you can. First, contact the former HR employee in writing and remind her that you expect her to conduct herself as a professional, including keeping personnel and payroll information confidential. Do not make threats, but remind the employee that her positive reference from your company depends upon it. If she is currently engaged in a job search, this will likely carry some weight with her, since she is unlikely to find a job in the current market without a positive reference from her former employer.

Your primary efforts to control this situation should focus on your current employees. While there is little you can do to control the former HR employee, you have much more influence over current employees. Have a private meeting with each of her friends and let them know that if they listen to confidential information about other employees, or repeat it, they are in violation of company policy. Discipline any employee who engages in this behavior and document it. If the current employees understand that this relationship is jeopardizing their jobs, they may be less willing to collude with the former HR person.

Some employers would go so far as to discipline or terminate employees for continued fraternization with the former HR employee. If you are in an at-will state, you can terminate an employee for any (non-discriminatory) reason, or without any reason. Many employers would see this continued relationship as reason to terminate their current employees. Firing the former HR pros friends is an extreme measure, but if you feel that damage is being done to your company, it may be warranted. (In a few states this tactic would be illegal. However, in every state you can discipline or terminate an employee who engages in this type of gossip with a former coworker.)

Under federal labor relations regulations, two employees have the right to discuss their work frustrations with each other. However, an employee does not have the right to pass on confidential information about another employee to a coworker.

Depending upon the information that is being shared, another way to handle the situation is to clear the air with these employees. If the HR pro is gossiping that an employee was treated unfairly, discuss the issue with the employee involved in the gossip. This will at least allow you to present your side. It is important that an employer act fairly and justly, and that employees know that. However, still caution the employees against participating in this gossip moving forward.

To answer your second question, yes, a current employee can sue a former HR professional for slander or libel. If the problem continues, you may want to have an attorney send the former HR pro a letter on behalf of the company or a current employee (or both), advising her that if she does not cease and desist, you will have to take legal action.

You may also want to consult an attorney. If the former HR pro is releasing private health information, info on disabilities or other info covered by HIPAA, GINA or similar laws, she is putting the company in an impossible position. If the information she is disclosing is not covered by one of these laws, there is somewhat less damage, although this is still a distasteful situation.