Providing References for Your Current or Former Employees: What You Need to Know

What do you do when a prospective employer calls to ask for information about one of your current or former employees? Do you have to respond? If you do respond, what can you say (or what should you say) to avoid liability for potential claims brought against you by the employee? Utah law has something to say about that.

First, while the law allows you to provide certain information about your employees, it does not require you to do so. So if for some reason you would prefer to not provide information, you may decline to do so. Another option is to provide only a "neutral reference," which includes name, dates of service, and roles held-nothing more. A neutral reference clause is often included in severance or settlement agreements with former employees, but the neutral reference can be used for other employees as well.

Second, if you choose to provide information (positive or negative) to prospective employers, you should focus on things like job titles, job performance, professional conduct, and employee evaluation.

Finally, there are some things you should avoid disclosing to prospective employers. Namely, you should avoid disclosing sensitive employee data that is protected by privacy laws. You should also avoid saying anything that is false, intentionally misleading, or shared with reckless disregard of the truth-these things can lead to liability for defamation and other claims.

If you stick to these guidelines, you should be shielded from legal liability for disclosing employee information to prospective employers. If you would like to know more, feel free to contact us. We're here to help.