Defamation

• Defamation is when someone makes a false statement for the express purpose of damaging someone else’s reputation. It’s critical that any information a human resources department shares with a former employee’s potential employer can be proven. For example, suspecting an employee of theft and sharing that could be considered defamation. If an employee was caught stealing, that can be proven and could be shared with a potential employer.
  
  

Limiting Information

• Many employers adopt the policy of only providing the dates a former employee worked for them and no other information. This protects employers from possible defamation suits by not providing any information that can’t be proven. If important information, such as a violent workplace history, isn’t shared with a potential employer, though, that could also leave the former employer open to a lawsuit if the former employee acts out in his new workplace.
  
  

Waiver

• One way employers and human resources departments can protect themselves from lawsuits from former employees is by asking terminated employees to sign a waiver. This waiver should state that the terminating employer is free to provide information about the former employee, and that the former employee will not sue for any information provided. Human resources departments can incorporate this waiver into their exit interview process.
  
  

Alternatives

• Instead of or in addition to a waiver, human resources can assign one or two members to handle all reference requests. These employees should carefully document what information is given to potential employers, so that in the event of a lawsuit, the documentation is available. Assigning one or two employees to give references keeps the references consistent and controlled. These employees should provide brief but honest assessments of the former employees based on the information available in their human resource files.