You have been hired as the assistant director of a company's Human Resource Department. The director calls you in and tells you that she is considering a suggestion to the Board of Directors that the company adopt a policy of refusing to give substantive information on employee references. She asks you if adopting such a policy makes sense. What advice will you give to her?

Answer 1

Students answers will vary, but they should note that there is no requirement (other than a service letter requirement in some states) that the company even respond to requests for references. However, some sort of response would likely foster good-will with companies making the request so providing responses should benefit the company over time. Failing to give substantive information may result in other employers also refusing to give substantive information about their former employees.

With the possibility of law suits for providing derogatory or negative information, failing to provide substantive information would certainly reduce the company's exposure. Even though the frequency of defamation law suits is not high and employee successes are minimal, the cost of defending law suits does cause a concern. Substantive references also give rise to the possibility of negligent referral and retaliation law suits if improper information is accidentally transmitted. While these suits are also relatively infrequent, the cost of defense must be paid. The courts have already litigated and decided that failure to give substantive information cannot be an implication that the information, if provided, would have been negative. Therefore, limiting referrals to dates of employment and possibly job titles, without other substantive information would be the safest course of action for the company, although perhaps not the best course of action.

Chapter 6
EMPLOYMENT TESTS
Test Bank Questions, 5e

MULTIPLE CHOICE QUESTIONS