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Staying Out of Court
As we discussed in yesterday’s Advisor, there’s no shortage of risks for employers when giving references for former employees. Here are some tips to minimize these risks:
- Have a clear policy on references. Designate who in the company can give them, and keep that list short. Ensure that anyone on that list understands the legal ramifications of references. If you do have a reference policy, be sure it is communicated to all employees (consider making it part of the employee handbook).
- If you do give references, be consistent in what information you provide, and stick to the facts.
- Consider getting written consent (in the form of a signed release) from employees who are leaving the organization. They are consenting to the release of information regarding their employment history.
- Pay attention to your state and local laws; some states do not give employers the option to not give references at all. Some states require that certain information is provided, and you’ll need to know the minimum that you’re required to disclose no matter what the rest of your policy is.
- Keep in mind that states may also have laws around “blacklisting,” and employers need to be careful not to cross that line with bad references. Check your local laws, or consult legal counsel if you’re unsure.
- Be careful who you give information to. Even if someone calls you for a reference, it may be a good idea to call them back or to require the reference request to come in writing. This gives you the opportunity to verify the identity and company of the caller before providing information.
- Avoid retaliation against former employees for legally protected activities.
- Keep good records of everything that happens with your employees. If you have to terminate an employee, you’ll need these records to prove any claims you have, which will also help if you find yourself in a situation in which you’re being sued for defamation.
- Also, keep records on the references you give. Include all information given.
What is your organization’s policy on references? What information do you give?
Of course, handling former employee references isn’t the only thing you have to worry about—it’s never just one thing in the world of HR! Retention and turnover are also on every HR manager’s front burner. Turnover is your organization’s most debilitating disease. Retention—of the people you want to retain—is the backbone of your organization’s success. Gain an advantage with our guide, Employee Retention and Satisfaction: How to Attract, Retain, and Engage the Best Talent at Your Organization. Check it out now!
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