Giving a negative employee reference can land you in the middle of a lawsuit if you're not careful, as some state laws allow former employees to sue for defamation. However, you also want to be honest about an employee's performance if a reference checker comes calling. It's important to learn how to give a negative employee reference that does not violate the law.
Edit Steps
- 1Set clear and consistent policies on what information should be given to someone checking references. If possible, warn an employee during an exit interview that you may not be able to provide a good reference.
- 2Assign one person to handle all reference requests at your business. That way, one person knows the legal ramifications of the process, decreasing the chance that a reference will be mishandled.
- 3Make sure you give information to an authorized person. Most companies make their requests in writing for this purpose. If you have any doubts about whether to release information to a prospective employer, contact the ex-employee to get her permission.
- 4Know what kind of information you can provide by law. Usually, you are allowed to the employment period, the employee's position, any promotions and awards, and whether the employee showed up to work on time.
- 5Use creative wording if you want to give a negative employee reference. For example, instead of saying an employee was a bad worker, say that he wasn't a good match for the job.
- If you provide an opinion, make it clear that it is only your opinion. Otherwise, only give information backed by the employee's record. The only way you can be held liable is if you are acting in bad faith.
- Do not disclose anything that would violate an ex-employee's privacy. Do not disclose information that does not directly relate to job performance.
- 6Give short, concise answers to questions without going into an explanation unless asked for one. If you're not fully prepared to discuss the employee, ask to call the company back after you review the employee's record.
- While you don't want to be overtly negative, you also don't want to lie or leave out important information that may impact the employee's new employer. Failing to disclose serious problems can result in a lawsuit, as well.
- 7Offer documents, such as a termination letter or a performance review, that could allow the reference checker to come her own conclusions.
- 8Document each time a company requests a reference by noting the date, company and person you spoke with. Keep the information with the former employee's record.
Edit Tips
- Develop a release form for employees to sign upon leaving the company. Without a signed release form, you can only provide reference checkers the basic facts about when the employee worked and in what position.
- Record phone calls relating to reference checks if you are wary about lawsuits. However, make sure the other person on the line is aware that the call is being recorded.
Edit Warnings
- It is illegal to talk about an employee's sexual orientation, health, religion or political affiliations.
Edit Sources and Citations
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