How to Handle an Employee Who Is Spreading False Information About the Company
An employee is making statements about your business (internally or externally) that are false and damaging. This situation requires a careful, legally informed response. Here is how to address it.
Understand the Legal Boundaries First
Before responding, you need to understand two legal constraints that significantly affect what you can and cannot do.
NLRA protected concerted activity
Employees have the right under the NLRA to discuss working conditions, wages, management practices, and other terms of employment with colleagues and publicly. An employee who tells coworkers 'our manager treated me unfairly' or 'the pay here is below market' is likely engaging in protected activity even if you believe their characterization is inaccurate. You cannot discipline an employee for this type of communication.
False statements of fact
What the NLRA does not protect is knowingly false statements of fact that damage the business, particularly when made to clients, the public, or regulatory agencies. An employee who falsely tells a client 'this company is under investigation by the EPA' or fabricates specific facts about business practices is making statements that may support discipline and potentially legal action.
The line between protected opinion and actionable false statement is not always clear. Consult with employment counsel before taking disciplinary action based on employee speech.
Document the Specific Statements
Before taking any action, document specifically what was said, to whom, when, and in what context. You need the specifics to assess whether the statements are protected activity or something you can address, and to support any subsequent disciplinary action.
Address It Directly With the Employee
If you have determined that the statements are not protected and are factually false, have a direct conversation: 'I need to talk with you about statements that have come to my attention. On [date], you told [person] that [specific statement]. That statement is not accurate. I need it to stop.'
Give the employee the opportunity to respond. There may be context you are not aware of, or the statement may have been mischaracterized in how it was reported to you.
What Not to Do
Do not issue broad social media or communication bans. These are typically illegal under the NLRA.
Do not retaliate against an employee who has raised legitimate workplace concerns, even if you believe their characterization is unfair
Do not threaten legal action without consulting an attorney. A threat you do not follow through on damages your credibility and a threat you follow through on incorrectly creates liability
Get a Progressive Discipline Policy Template
Conduct issues including false statements that damage the business fall within your progressive discipline framework. Document it, apply it consistently, and consult counsel before taking action on employee speech.
Questions about this or other HR topics? Visit pragmatichrgroup.com for more resources.
