- Blog post
Two words in an employment reference check cost millions
Be very careful when dealing with employment references or it can cost your company a boatload of cash
OMG. When contacted for an job reference about a former employee, a manager said the worker had “mental issues.”
The man didn’t get the new job. But when he sued the original employer, he did get something: a jury award of $2.4 million in damages.
Managers with feet in mouth
This recent case underlines the need to have and enforce a proper employee policy on responding to reference checks. When any and every manager feels free to spout off to potential new employers, trouble is just around the corner.
You needn’t go beyond the name-rank-serial number policy of verifying only that the person worked for you. But if you choose to be more helpful to future employers, you should:
- Ask departing employees to sign a release allowing you to respond to questions asked by potential new employers.
- Establish a single point of contact – ideally HR – for references. Let everyone else know not to comment.
- Provide only accurate and verifiable information, and only to parties with a need to know.
Cite: Raedle v. Credit Agricole, 04-cv-2235, U.S. District Court, Southern District of New York (Manhattan)
photo credit: TheGiantVermin