As more job seekers continue to look for employment in today’s job market, businesses will continue to field reference check calls from other employers. A 2010 survey from the Society for Human Resource Management found that 76% of companies conduct reference background checks for all job candidates and another 22% conduct background checks for selected job candidates. Only 2% of respondents do not conduct background checks.
Today, responding to reference checks has become a tricky business. It’s important to minimize legal risks, like lawsuits that claim defamation of character, discrimination, infringement of privacy, or claims of negligent reference checks. Here are some basic steps you should keep in mind when providing reference information about a former employee.
Establish a Policy
The first step to minimizing the risks is to develop a company policy. The second, is to ensure supervisors, managers, and all employees adhere to it. Many companies have restricted reference policies in place to limit liability and provide guidelines for responding to reference requests. Policies often require supervisors to notify the human resources department of requests. HR experts recommend you designate a trained HR representative to handle all employee reference checks.
Proceed with Caution
Before responding to a reference check, review the company policy. If the reference request is made over the phone, take down the contact information of the individual requesting employment verification and return the call after you’ve reviewed the policy and contacted your HR department.
Company reference policies should require written consent from an employee allowing you to share certain employment information. Taking time to respond to a reference request will also allow you to ensure you have a signed consent form on file first. If an employee left on bad terms, it’s also important to seek legal advice before responding, to prevent negligent reference claims.
Stick to the Facts
The reference information you provide should be factual and relevant to the individual’s employment history with your company. Do not volunteer information and avoid sharing personal commentary or opinions. Don’t disclose sensitive information including information about race, religion, age, disabilities, sexual orientation, or marital status. Stick to verifying basic facts like date of employment, salary, and title.
Make a Record of the Conversation
Be sure to make note of any reference information you provide to potential employers about a former employee and keep it on file. Document any pertinent information like the former employee’s name, the name and contact information of the individual requesting the reference, and a summary of the information you disclosed.
While it may be tempting to simply not provide information about a past employee, it’s important to remember that you can still be liable for negligent claims. To best protect your company from legal issues, minimize the risks by establishing a reference check policy supervisors and managers can follow.
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