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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.
However, in the context of providing a reference, an employee or former employee is likely to have a genuine choice about whether or not to consent. The prospective employer will often enclose a photocopy of the individual's signed consent to its seeking the reference in the reference request.
If your employment has been terminated and your employer has refused to issue a reference letter, you may wish to seek legal counsel to assist you with corresponding with your employer to highlight the legal liabilities associated with such a refusal.
There are no federal laws restricting what information an employer can disclose about former employees.
Regardless of their performance, are companies or managers obligated to provide reference letters to employees? Segal No, there is no law that makes it illegal to provide an evaluation, whether it be positive, negative or somewhere in between.
In fact, employers are legally permitted to say anything in a reference about a former employee's performance that is true, and in Pennsylvania, there is employer immunity by statute (that is, immunity from liability, not from being sued and having to respond).
You Have the Right to Decline a Reference Request There is never an obligation to give someone a reference. You can politely and diplomatically decline the request without offending the person who asked you. The trick is to do so without making your refusal sound like a personal criticism or a professional rejection.
There is no strict legal obligation for an employer to provide a reference letter of any kind. If, however, a court finds that an employer's refusal to provide a reference amounted to bad faith conduct that caused the employee harm, this may entitle the employee to aggravated or punitive damages.
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.
Although laws in some states say that a former employer only can offer information about you with your consent, most state laws allow a previous employer to not only reveal that you were fired, but also the reasons why -- as long as the information is true and accurate.