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coworker slander

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In 1999, my boss quit for employment elsewhere and about 3 months later a new boss arrived. Although I was skeptical about having another new boss (5 bosses in 16 years with the agency) I made a decision to work as hard as possible to be accomodating to him. I did the work without overtime pay and he was extremely complimentary and insisted that he would get me the raise I deserved. Potential raises only come around once a year and now it was time, a year later. He requested and got the raise approved. He proceeded to tell other staff members of his intentions. Two others were to get raises also (5 total staff). The other two members would get their raises the next year. One of the staff (she was getting a raise) did not like the idea that I would move from $11 to $15 (although her raise would put her well above $20 per hour. The next day he was out of town and she went to the top administrator to complain. The next day he questioned her on why she went there and that's when I overheard things I wish I had not (her sidekick was with her, another co-worker). She began by saying that I did not deserve it and that I was just giving him a snow job on the work that I had done. Over and over she said nothing but destructive things on my behalf. Whew! I never knew. After about an hour of discussing my shortfalls, the meeting ended. He immediately went to human resourses and came back and called me in. He said that I would not be getting a large raise but a much smaller one ($12 per hour). I told him I heard most of what was said and he asked me to not say anything and that he had to listen to them because he had only been there a year even though the work I had done was well over what had been expected. I told him I thought the outburst by this worker was due to personal reasons and he agreed but asked me to back down and say nothing. I did what he asked. Raises do not come easy at my agency, your boss has to initiate and move it along or it just won't happen and she knows this. I have been employed there 17 years this year and the employee against me has been employed 7 years. Raises were not given due to budget constraints and they won't be given this year. I think she has ruined my chances for advancement anyway and it is hard for me to even be near her. Can she get away with damaging my reputation not only with my immediate boss but the top administrator as well. Is this slander? Do I have a suit?

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