If it hasn’t already happened, there will come a day when you receive a phone call requesting an employment reference for a fired employee. The request will undoubtedly put you in a difficult position. You’re probably aware that a bad reference can turn into a defamation or tortious interference lawsuit. But did you know that not telling the truth can also get you in a little bit of legal trouble? Well, it can. You can be held liable under the tort of negligent misrepresentation. Employers are increasingly being sued for failing to disclose a former employee’s improper behavior . In order to avoid a defamation suit, an employer will provide a positive reference for a fired employee. But when that employee repeats the offending actions, the old employer suddenly finds himself under legal scrutiny. A number of these lawsuits have been successful. The California Supreme Court ruled that a referrer has a duty not to misrepresent facts about a former employee. This means California employers cannot give a raving review when an employee was fired for stealing. Some courts only apply this rule when a reference does more than just verify dates of employment. Only those employers who discuss job performance are liable. The possibility of a negligent misrepresentation lawsuit should make you extra careful when providing a reference for a fired employee. You’ll need to choose your words carefully, so as not cross the line into defamation territory. There’s a fine line between disclosing too much and too little. Talk with an attorney about where that line rests within your jurisdiction. It’s always better to be prepared before someone requests a reference for a fired employee. Related Resources: Employment References – How to Avoid Getting Sued (FindLaw) Medal of Honor Lawsuit Serves Lessons in Law (FindLaw’s Free Enterprise) Background Checks Do’s and Don’t’s (FindLaw’s Free Enterprise)
Read more from the original source:
How to Handle References for Fired Employees