When an employee files a complaint about a manager or co-worker, you want to conduct a thorough investigation, even if your gut tells you it’s a false accusation. Can that get you sued for defamation?

That’s what happened to American Airlines after it looked into allegations about threats from one co-worker to another.

An employee went to the HR manager to report that, during a heated argument, a co-worker told him he was going to “cut out his intestines.” An investigation began promptly. Witnesses acknowledged there had been an argument, but no one overheard any specific threats. In the end, the airline decided to suspend the accused employee.

During the investigation, the HR manager kept the department head, as well as other managers and execs, informed about what was happening. Also, co-workers were told that the man had been suspended, though not the details about why. He sued the company for defamation.

Right to know

Initially, a jury awarded the guy $100,000 on the grounds that the company spread false or unsubstantiated statements about him to managers and let rumors circulate among his co-workers. However, the decision was reversed on appeal. The court ruled that the airline’s execs had the right to know about the investigation. Also, it was reasonable to tell employees that a co-worker was suspended, and the company did the right thing by not mentioning the reason.

The key lesson for employers is the importance of confidentiality during investigations. Complaints should be taken seriously and investigated as soon as possible, but information about the allegations should only be disclosed to those who need to know.

If someone is disciplined, you may need to let his or her co-workers know, but don’t tell them any more than you have to. Finally, remind the people you do have to talk to (the accuser, the accused, witnesses, etc.) not to spread the word.

Cite: American Airlines, Inc. v. Geddes