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Many people think of them as an afterthought or are convinced that it's illegal for their previous company to say anything about employees other than to confirm their dates of service and job title. In fact, companies and individuals can say anything they want to in a reference check, as long as it's true.
There are no federal laws restricting what information an employer can disclose about former employees. Check with your state department of labor for restrictions on employer disclosures in your state.
In most states, employers can legally provide any truthful information about your past work performance. The good news, however, is that most employers won't do it because there is a risk that you might bring a defamation lawsuit that would cost a lot to defend.
Providing a Reference Many employers will release only basic information when contacted for a reference to protect themselves from lawsuits. They usually confirm employment dates and job responsibilities, salary history, and might include information about whether you were dismissed or chose to leave on your own.
Legally, they can say anything that is factual and accurate. Concern about lawsuits is why most employers only confirm dates of employment, your position, and salary.
Your employer doesn't usually have to give you a reference unless: your contract says they will. you have written proof they've agreed to give you a reference - like an email.
A former employer can tell a potential employer anything as long as the information is factual and correct. Under federal law, there is nothing to prevent a former employer from saying whatever they care to tell about people who worked for them and left, even if under less than ideal circumstances.
Typically, employers are allowed to share general information regarding your tenure with their companiesthings like your dates of employment, job title, and responsibilities, all which serve to confirm your employment and validate the things you likely provided on your resume for potential employers.
Employers are not prohibited by law from disclosing to a potential employer - who calls for a reference about a former employee - the reasons that the employee left, as long as the information they share is truthful.