Dallas supervisor dodges defamation lawsuit

Supervisors of a company are an essential HR resource. And, for the most part, well-trained supervisors do a good job. This is why it was good to see a lawsuit dismissed against a supervisor by a federal court in Dallas.

Accusations made, and lawsuit ensues

Albert J. Garry was an employee for Alpha Source, Inc. Josh Yeager was his supervisor. Yeager fired Garry for his alleged inability to follow work-related procedures. Garry, not unnaturally, filed for unemployment compensation at the Texas Workforce Commission (TWC). Alpha, just as naturally, fought the awarding of such benefits, asserting that Garry was fired for cause. The TWC agreed with Alpha based upon Garry’s testimony.

Consequently, Garry sued Yeager, alleging that Yeager’s testimony before the TWC was false. His testimony therefore resulted in Garry’s loss (namely, no benefits). This is what is called a defamation claim.

The result: The supervisor prevails!

Why? It’s the law. There are two prongs to this:

• Texas Labor Code, Section 301.074:”an oral or written statement made to the TWC in connection with the discharge of the TWC’s or of the employee’s duties. . . shall not be the basis for an action for defamation of character.”
• “Proceedings before the TWC are considered quasi-judicial proceedings, therefore any communications involved in these proceedings cannot be the basis for defamation claims.”

In other words, the TCW operates like a court of law, and all communications made in that courtroom can’t be the basis for a defamation claim.