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videotape law and libel

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I work in a restaurant/nightclub where the employers have video cameras set up to watch over the employees and patrons, and all employees have been informed that the cameras are in place. Recently, a fellow employee was "caught" on videotape stealing money that should have gone in the register, but went into his pockets instead. The videotape was shown to all wait staff at a meeting, including the alleged thief. Now he's claiming defamation of character. Could the tape be considered libel? There were patrons in the restaurant at the time this videotape was shown on a 20 foot screen. I would say he has a case, as it's not 100% clear (obstructed camera view) that he did what they are accusing him of. No audio was used. Just what does the law say about videotaping employees? Thanks so much!

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