Responding to Reference Check

The law makes it clear that you can communicate information on the job performance or qualifications of a current or former employee upon the request of a prospective employer. In addition to the protections offered by this law, you can lessen exposure to liability by establishing uniform procedures for responding to requests for information.

Some companies set a policy of not providing references at all. This may not be a wise choice, as it could lead to liability if a former employee has been terminated for violence or is known to be violent. If that employee is hired by another company and commits a violent act on the job, your company could be liable for failing to provide information that could have prevented the incident.

  • A claim for unlawful interference with prospective economic advantage can occur when a prospective employer decides not to hire an employee based on false statements or inappropriate facts disclosed by a former employer.