How to Avoid a Potential Lawsuit When Giving References

Job applications often use negative references by former supervisors or managers as the reason for not getting hired, and these complaints have potential to result in a defamation lawsuit. Understandably, some employers are hesitant to provide references for this reason, but there are easy ways to reduce the risk of litigation.

Things You'll Need

• Consent Form
• Confidential personnel files

Instructions

Avoid Litigation When Giving References

1. Get consent from all employees to discuss their employment with your company to future employers. Many companies require all potential employees to sign a authorization form when applying for a position. This policy, if strictly followed, is a good way to avoid a defamation lawsuit.

2. Keep personnel files accurate and confidential, and be sure that they include only objective information about employees. Personnel files are often used as the primary source of information for references. Therefore, it's extremely important that only factual and verifiable information is included. Any negative information should be verified by the employee's supervisor and should refrain from including any personal information or gossip.

3. Allow only one manager or supervisor in each department of your company to give references for employees. Your human resources department should field all requests for references and manage the process for completing each request. This is an effective way to ensure the references your company gives are accurate and consistent with the information stored in personnel files.

4. Make only objective comments when providing a reference. Only information that can be factually verified in a lawsuit should be given, such as start and end dates of employment, salary history, official job titles and attendance records, if available. Avoid offering any additional information outside of the questions you are asked to answer.

5. Be as equally cautious when providing a positive reference as you are when giving a negative one. It is easy to make subjective comments when praising an exceptional employee, and though the reference may be in positive in nature, there is still danger of making a false statement. Comments about personal issues and character traits should be avoided.

Tips & Warnings

• Keep a record of all references you are asked to provide, including the date you were contacted, the name of the employee and all details of the conversation or reference request.

• Do not provide references over the phone whenever possible, as they tend to be less formal. There is much more potential to make false claims about the comments made when providing a reference when there is no official record of the conversation. Giving references only in written form is the best procedure to prevent a defamation lawsuit so that all comments are backed up.