2 big risks of not having a reference policy

There’s a lot of debate about what companies should say when they’re asked about former employees. Here’s one big rule to keep in mind:
Have a policy and stick to it.
There are a few legal risks companies face when giving out references.
A big one, of course, is discrimination. If most employees just get a neutral reference confirming titles and dates, but one manager strays from the norm to bash an ex-employee, there’s a chance he or she could say it was based on race, gender, religion, etc.
Same goes if a manager refuses to give a reference to one former worker because of membership in a protected class. Consistency is the key.
Negligent references
Another pitfall for employers to watch is the “negligent reference” — when a company fails to warn the new employer about a threat posed by the worker.
In one recent case, an ex-employee got a glowing reference despite being fired for conduct that put people’s lives in danger. The company was sued and lost.
According to the court, if the company had given no reference at all it would’ve been fine. But when the manager offered some information, he had a duty to tell the whole story.
How does your company handle reference requests? Let us know by leaving a comment below.