Employer's failure to do its homework leads to six-figure defamation award

A Louisiana employer's allegations during a hearing about a former employee's unemployment benefits claim ― that she had engaged in fraud ― resulted in a $224,000 judgment in her favor for defamation of character. The case serves as a reminder to employers of the potential pitfalls of even a lowly unemployment claim proceeding and the risks of accusing an employee of fraud when they don't take steps to ensure the allegation is factually sound.

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