The Defamation Trap in Employee References

Abstract

Defamation occurs when one person knowingly and maliciously gives damaging, false statements about a second person to a third person. In some cases, giving a negative reference could open a manager to the threat of a defamation suit. Because of that threat, some managers are unwilling to offer substantive information about their former employees, rendering reference checks useless. Some courts and legislatures have offered limited immunity from defamation threats for reference-checking communications, but that protection can easily be lost through careless 18-24 comments or procedures. The chief defense against defamation is to present factual information and to label opinion as such.