If your previous employers is stating that the reason you left your job without notice is because you had a break down and was hospitalized(which is not true) is that slander. The employer does know of this persons depression problem and was hospitalized 25 years ago, but has since held jobs in management postions since then. The previous employer has stated this to several other co workers on numerous occasions so the employer has not said this statement just once, and she (the employer has said that going in and out of the hospital is nothing new). What can be done?

If your previous employers is stating that the reason you left your job without notice is because you had a break down and was hospitalized(which is not true) is that slander [?] ...

So you left your job without notice for a better-sounding reason?