California Civil Code sections 45 and 46 define libel and slander (written and oral statements which may constitute defamation). It has been consistently held in California over 60 years ago that libel includes, with certain limitations, almost any language, which, upon its face, has a natural tendency to injure a person’s reputation either generally or with respect to his occupation. Washer v. Bank of America (1943).
The courts have held that while there is a strong public interest in allowing employers to freely and subjectively evaluate the performance of their employees according to their own unique standards and guidelines, even a performance review can be defamatory if it accuses an employee of criminal conduct, lack of integrity, dishonesty, incompetence, or reprehensible personal characteristics or behavior.
The critical part of any defamation claim is demonstrating that the defamatory language used by the employer was an assertion of fact or not an opinion. Thus, when the employer describes an employee in the performance review as “poor communicator” or “lacking in focus” – these are highly subjective statements of opinion that cannot constitute defamation. An assessment of skills, habits and personal qualities is necessarily an expression of an opinion by the evaluating body.