Can Employers Give a Bad Reference for a Former Employee?

When giving references for former employees, employers generally do have immunity in terms of what they can say, to an extent. When the employer deliberately provides false information or acts with malicious content during a reference check is when that immunity is no longer applicable. Therefore, employers must tread carefully when referring a former employee.

Walsworth partner Sage R. Knauft recently spoke with HR Magazine regarding this matter, stating that “The employer still could face a defamation (libel or slander) lawsuit from the employee or a negligent referral lawsuit from the prospective employer if care was not taken in limiting the type of information provided and making sure that the information was given to the correct person.” Sage also offered his advice on how to minimize risks, including giving permission to provide references to “only one person, usually a trained HR professional,” and providing “only factual information, and avoid giving opinions about the employee’s suitability for a new job.”

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