What Can HR Legally Tell Prospective Employers if Fired?
Federal laws do not restrict what information an employer can disclose about a former employee. If a company fired an employee, the HR department can legally confirm the firing and also give reasons why the company terminated the employment. However, because of a fear of subjecting the company to lawsuits, many employers make it brief and neutral in tone when asked for references and will not disclose information about an employee’s firing.
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What Can Employers Say About Former Employees?
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Former employers can legally say anything they want about you, as long as it is factual and accurate. If your former employer fired you, you should verify what information the former employer will provide to hiring managers confirming employment or checking references. Companies have different policies and you should not assume the HR department will not disclose the reason why you no longer work for your former employer. To improve your chances of getting a new job, it is important that the information you give the prospective employer matches the information your former employer will give.
Defamation Lawsuits
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Defamation includes libel and slander. Concerns about subjecting the company to lawsuits limit what most companies will say about ex-employees. Many companies will only confirm dates of employment, position, duties and salary. If the previous employer provides prospective employers with subjective information that is not factual and accurate, the previous employer opens itself to potential litigation. To win a defamation case, you must prove in court that your former employer intentionally made inaccurate and harmful statements about you to damage your reputation.
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Human Resources Policies
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Corporations and larger businesses typically have internal policies that regulate the disclosure of ex-employee information. These company policies require managers to only disclose the basics when verifying employment information. Smaller businesses may not have such policies but often hold awareness of the laws concerning defamation and may also opt to release limited information about former employees. In general, most organizations choose to provide only the verifiable facts, as any negative statement provided qualifies as a harmful statement. Some companies will tell prospective employers that an employee was let go, but will not provide further details about the employee’s departure.
State Labor Laws
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State labor laws may also limit what employers can disclose about former employees. Although state laws regarding termination disclosure vary, generally these laws prohibit employers from making untrue statements about an ex-employee to a potential employer. Further, most states make a distinction between protected and unprotected statements. A former employer can describe a firing and the circumstances surrounding the firing, as long as the former employer remains truthful and has no malicious intent to harm the former employee.
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