How Employer Badmouthing Can Lead to Financial Loss

If you made mistakes as a teenager that could potentially hurt your career as an adult, learn from my family's experience on how to help with that situation.

How Employer Badmouthing Can Lead to Financial Loss

27 June 2017
 Categories: Law, Blog

It's normal for an employer to admonish an errant employee; no employee should be left to act as they wish. However, some employer actions go beyond admonishment and enter the realm of defamation. For example, an employer who calls you a good-for-nothing thief when you really aren't a thief is defaming you. Such employer actions can cause you financial loss in various ways. For example, it can lead to:

Loss of Promotion

Serious allegations, especially those that are criminal or are borderline criminal, can make you lose a promotion. For example, a supervisor who hears your boss calling you a thief is unlikely to recommend you for a promotion. Another example is when, during a meeting to discuss staff promotions, a boss alludes to you having stolen company resources. Since promotions often come with financial rewards, such cases of defamation directly lead to loss of earning opportunities.

Rejection by Potential Employers

Your employer's words can also lead to a financial loss by making potential employers reject your application. Of course, this is only the case if those potential jobs could have afforded you higher financial rewards. These financial rewards don't have to be strictly salaries; other perks such as company housing or stock options also count. For example, a headhunter who hears your current boss talk about you in a negative light is likely to err on the side of caution and cool their interest in you.


In serious cases, defamatory news about you may even lead to even lead to a demotion. Of course, demotions are usually associated with reduced salaries or financial perks. For example, if you were the head of a department at a local college, you may be stripped of the position, and you will experience reduced earnings even if you are still allowed to teach.  

Loss of Business Opportunities

Lastly, defamatory statements by your boss may also cause loss of business opportunities on your side. These days, many employees have a side business that they run in their free time or let others manage; this is perfectly acceptable if it doesn't go against your company's policies. However, a potential business partner who hears your boss make criminal allegations against you may be reluctant to enter a business contract with you.

If you are concerned about your finances and how your job affects them, contact a law firm like Law Offices Of Harry G Lasser.

About Me
teenage mistakes that could ruin adult careers

My son has had the goal of becoming an attorney since he was about 14 years old. Unfortunately, he made a very poor decision with a group of friends when he was 16 that put his future plans in jeopardy. When my son told me what had happened and we received the citation, I knew that we had to hire an attorney to help him through this. I could not see how a small incident such as this should hurt his chances for success when he is an adult. Thankfully, things worked out for us, but it was a long journey which you can follow on our blog.