If a co-worker defames me using slander to customers and my employer doesn't stop it can I sue?

A co-worker accused me of theft and improper time recording to HR as part of her ultimate goal of being awarded my job. An audit ensured in which no grounds were ever discovered substantiating her claims made against me. In the meantime, this same co-worker told an unknown number of external customers that I was stealing from the company, giving away goods to competing customers, and she would have my job soon. My company has decided to allow this co-worker to continue working for the company in the same capacity as prior to the accusations and has offered nothing to me to counter the slanderous statements made by the co-worker to external customers. I was told by HR to "set the tone" for her return to make it a positive experience for everyone. I have been in the same business for over 30 years, and success in this business relies heavily on a solid reputation and credibility. Do I have grounds for a defamation lawsuit against my employer for doing nothing? Against the co-worker who made accusations of felonious activity?

0 answers  |  asked Nov 4, 2011 07:02 AM [EST]  |  applies to Tennessee