Good Guys Construction Co. believes in open communication with its employees. Recently an employee was terminated when he showed up for work and the supervisor smelled alcohol on his breath. When rumors started circulating about layoffs and lack of work, Good Guys held a staff meeting and explained that the employee was terminated for arriving at work under the influence.

It is difficult to know how much to tell coworkers when an employee is terminated, especially if the termination is unexpected. But employers need to be careful that what they say doesn’t give the terminated employee grounds for a defamation lawsuit. Defamation can occur when an employer gives untrue information about an employee to a third...

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