It is conventional wisdom that when asked for a reference on a former employee, a dealership should only state whether the employee was employed and the dates of employment. “Everybody knows” that providing too much information can get the dealership sued.
Unfortunately, what “everybody knows” has not served dealers well. Frequently, dealers find that employees who cause problems go from dealership to dealership because former employers are afraid to give negative references. We have often advised dealers that the best way to investigate job applicants is to call their references. If everyone refuses to provide any information other than dates on the job, the system will not work.
A number of states, including Virginia, have statutes that provide protections for employers who give truthful information about former employees. In Virginia, if a prospective employer requests a reference, a former employer can provide information about the employee’s job performance and the reason for separation. As long as the former employer gives the reference in good faith, it will be shielded from liability.
A former employee has a significant burden because of these laws in overcoming the shield. To overcome the presumption that the former employer “acted in good faith” the employee must prove by clear and convincing evidence that the employer intentionally or recklessly gave false information in an attempt to damage the former employee.
Even though the law provides protections for a former employer, a dealership should have a policy and should follow it when it receives a request for information on a former employee.
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Require a written authorization by the former employee. Many employers use a form that authorizes the prospective employer to investigate the candidate and authorizes prior employers to provide information about the candidate. Ask for written authorization to release information.
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Make sure that requests for references are routed to a person in charge of providing them or a group of people in charge of providing them. The dealership should have a strict policy about who may give out references. Prior supervisors, workmates, or others in the dealership who are not on the list of those who can provide information should not give references. The car dealership business is a small world. Many dealership managers know managers in other dealerships. It’s a great temptation to provide opinions concerning former employees. Make sure that all management staff members understand who may give out references.
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Make sure that the people providing references are trained. They should understand what they should ask for in terms of proper authorization. They should understand what information they can provide. They should understand what information they should not provide.
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Information provided should be limited to the questions that are asked. Nothing is gained by volunteering information.
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Limit responses to facts. One may talk about the former employee’s period of employment, job positions, duties of the jobs held, salary or other pay information at the time of termination, and whether the dealership would rehire the employee. One may discuss job performance and the reason for separation. At no time should a person giving references discuss the physical or mental characteristics of the employee or anything about the personal life of the employee. Do not give opinions about the former employee. Do not share personal feelings about the employee. Just the facts.
It is conventional wisdom that when asked for a reference on a former employee, a dealership should only state whether the employee was employed and the dates of employment. “Everybody knows” that providing too much information can get the dealership sued.
Unfortunately, what “everybody knows” has not served dealers well. Frequently, dealers find that employees who cause problems go from dealership to dealership because former employers are afraid to give negative references. We have often advised dealers that the best way to investigate job applicants is to call their references. If everyone refuses to provide any information other than dates on the job, the system will not work.
A number of states, including Virginia, have statutes that provide protections for employers who give truthful information about former employees. In Virginia, if a prospective employer requests a reference, a former employer can provide information about the employee’s job performance and the reason for separation. As long as the former employer gives the reference in good faith, it will be shielded from liability.
A former employee has a significant burden because of these laws in overcoming the shield. To overcome the presumption that the former employer “acted in good faith” the employee must prove by clear and convincing evidence that the employer intentionally or recklessly gave false information in an attempt to damage the former employee.
Even though the law provides protections for a former employer, a dealership should have a policy and should follow it when it receives a request for information on a former employee.
-
Require a written authorization by the former employee. Many employers use a form that authorizes the prospective employer to investigate the candidate and authorizes prior employers to provide information about the candidate. Ask for written authorization to release information.
-
Make sure that requests for references are routed to a person in charge of providing them or a group of people in charge of providing them. The dealership should have a strict policy about who may give out references. Prior supervisors, workmates, or others in the dealership who are not on the list of those who can provide information should not give references. The car dealership business is a small world. Many dealership managers know managers in other dealerships. It’s a great temptation to provide opinions concerning former employees. Make sure that all management staff members understand who may give out references.
-
Make sure that the people providing references are trained. They should understand what they should ask for in terms of proper authorization. They should understand what information they can provide. They should understand what information they should not provide.
-
Information provided should be limited to the questions that are asked. Nothing is gained by volunteering information.
-
Limit responses to facts. One may talk about the former employee’s period of employment, job positions, duties of the jobs held, salary or other pay information at the time of termination, and whether the dealership would rehire the employee. One may discuss job performance and the reason for separation. At no time should a person giving references discuss the physical or mental characteristics of the employee or anything about the personal life of the employee. Do not give opinions about the former employee. Do not share personal feelings about the employee. Just the facts.