
Quoting
ESteele
The duality of explanations does not necessarily translate into a cause of action against your former employer. The employer’s explanations to the unemployment benefits representatives are generally privileged. Consequently, you cannot utilize these statements as a primary basis for pursuing a defamation action against the company.
If, however, the former employer informs a prospective employer you were “caught stealing from another employee,” such communication is not privileged. Consequently, you could utilize such a statement as a basis for pursuing a civil claim against your former employer.
In short, as stated earlier, you want to endeavor to discover what your former employer is communicating to prospective employers. The aforementioned “caught stealing” statement to unemployment may serve as corroboration. However, IMHO, you will want an additional statement or a witness confirming that your former employer has spread this falsehood to prospective employers, not just to the unemployment commission.
You may want to speak directly with local employment attorney to explore whether to utilize a “tester” to discover exactly what is now being said about you to prospective employers.