It is potentially considered extortion if he is threatening to post false statements about your company to harm your business and is demanding money he is not entitled to in order to not post the comments. However, this would be up to the DA and you need to bring the letter to the DA to review to determine whether or not they are interested in prosecuting or whether or not this is a civil matter.
It is not illegal or extortion for the employee to post TRUE information about your company or his opinion based on facts from which a reasonable person could come to those opinions. It is considered defamation (libel) only if he is posting known false information about your company and possibly the common law tort of false light if he is publishing misleading information with malice to portray your company in a false light.
At this point you really should contact your attorney to have them send the employee a letter to cease and desist making threats and warning him that if he makes any such false and libelous posts about your company you will sue him for damages. The attorney will tell him that if he believes there has been a breach of contract, which you deny, then he is free to resolve the matter by legal channels, meaning he can go to court
to pursue the money, but threats will not be tolerated.
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