Employment Law Questions? Ask an Employment Lawyer.
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If you can show that a false statement of fact was made about you to third parties, then yes you can sue for defamation of character. You can show some measures of damage already, but also having the complaint itself in your record (if you can't get it removed) can show an example of damages. Proving the degree of damages is legally your responsibility, which can be the most difficult part of the task. Additionally, this sort of claim is taken hourly in most situations, so there is a cost factor that can discourage people from filing the claim.
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