In Owners Ins. Co. v. Clayton, No. 25986, 2005 WL 1211365 (S.C. May 23, 2005), the Supreme Court of South Carolina ruled that defamation against a former employee did not amount to an employment-related practice.

Janette Clayton was the manager of Lands Inn, a motel. She was fired for allegedly embezzling funds. After her termination, two individuals who called and asked for her were told that she had been fired for stealing funds. No criminal charges were pressed, and she filed suit against Lands Inn for malicious prosecution, slander, and negligence. A jury awarded her $1.25 million.