Five Things Former Employers Can Legally Disclose During Reference Checks
In the hiring process, reference checks are a crucial step. As an employment agency owner, I’ve witnessed how these checks enable prospective employers to gather valuable insights about a candidate’s past performance, work ethic, and overall fit for a role. However, there’s often confusion about what information can legally be shared by a former employer during these checks. Many people assume that companies can only disclose basic data like employment dates, salary, and job titles. The reality, however, is more nuanced.
The Basics of Reference Checks
When I conduct a reference check, I’m verifying the information a candidate has provided and gathering additional insights that may not be apparent from a resume or interview. This process is crucial for employers who want to make informed decisions and minimize the risk of a bad hire. At The AGA Group, a leader in healthcare recruiting and staffing, we understand the importance of this process and work diligently to ensure that both employers and candidates have a clear understanding of what can be shared during reference checks.
What Can Be Disclosed?
- Employment Dates
- One of the most straightforward pieces of information that can be shared.
- Confirms the period during which the employee was with the company.
- Accurate reporting is crucial, as discrepancies can raise red flags for potential employers.
- Job Titles and Positions Held
- Former employers can provide details about the positions the individual held during their tenure.
- This includes the responsibilities and scope of the role.
- Helps prospective employers understand the candidate’s experience and qualifications.
- Salary Verification
- Some companies may be reluctant to disclose specific salary information, but it is generally permissible to verify the salary range for a given position.
- Ensures that the candidate’s salary expectations align with the compensation structure of the prospective employer.
- Reason for Leaving
- If an employee was terminated or left the company under specific circumstances, this information could be disclosed during a reference check.
- Examples include termination for cause, such as falsifying expense reports or habitual tardiness.
- Former employers have the right to share these details, provided they are factual and accurate.
- Performance and Work Ethic
- While this area can be more subjective, former employers can provide feedback on a candidate’s work performance, attitude, and general work ethic.
- It’s essential that any statements made are based on factual experiences and are not defamatory.
Legal Considerations
It’s important to note that while former employers have the right to share factual information, they must be careful to avoid defamation. Defamation involves making false statements that can harm an individual’s reputation. There are laws in place to protect individuals from slander (spoken defamation) and libel (written defamation). Most companies, particularly larger ones, are cautious in their responses to avoid potential legal repercussions. This is why many organizations have policies in place that restrict the information provided during reference checks to hard data only.
The Role of HR Departments
In many companies, the responsibility of handling reference checks falls to the Human Resources (HR) department. This is done to ensure consistency and accuracy in the information shared. HR departments typically adhere to company policies that outline what can and cannot be disclosed. For example, they may only confirm employment dates, job titles, and salary information, avoiding any subjective commentary on performance or behavior.
Smaller Companies and Reference Checks
Smaller companies may not have the same level of structure or established policies as larger organizations. In such cases, the information shared during reference checks can vary more widely. If an individual had a personal conflict with someone at a smaller company, it could potentially influence the information provided. Therefore, it’s crucial for candidates to be honest and forthcoming about their past work experiences when discussing them with potential employers.
Final Thoughts
At The AGA Group, we believe in the importance of transparency and accuracy in the hiring process. As a leader in healthcare recruiting and staffing, executive search, and employer of record services, we strive to ensure that both employers and candidates have access to the information they need to make informed decisions. Our extensive experience in workforce solutions over the past 45 years has taught us that clear and accurate communication during reference checks is essential for building trust and fostering successful employment relationships.
In conclusion, while there are certain limitations on what can be disclosed during reference checks, former employers have the right to share factual information about a candidate’s employment history. This includes employment dates, job titles, salary verification, reasons for leaving, and performance details. As a candidate, it’s essential to be honest and transparent about your work history, as this reflects positively on your integrity and professionalism. For employers, it’s important to handle reference checks with care, ensuring that all information shared is accurate and free from defamation.