Employers almost always contact previous employers as a standard part of the hiring process. This practice serves as a final verification step, confirming the details a job candidate has provided throughout the application and interview stages. While the intent is to verify an applicant’s work history and professional fit, the depth of the information shared is often more limited than many job seekers assume. Understanding the frequency of these checks, the type of information exchanged, and the legal constraints on former employers can help job seekers navigate this part of the process effectively.
The Frequency and Timing of Contact
Contacting former employers is a routine procedure, particularly in the final stages of hiring, where the potential employer is seriously considering extending a job offer. The frequency of these checks is high, especially for positions that involve sensitive data, significant financial responsibility, or security clearances. Many companies conduct reference checks for all their finalists to minimize the risk of a bad hire.
Initiating contact often falls to the human resources (HR) department, the hiring manager, or a third-party background screening company. HR typically manages the process for consistency and compliance, while a hiring manager may conduct a more in-depth, informal check for specific performance insights. Using a third-party company is common, as it allows the hiring company to outsource the administrative burden and provides a layer of legal protection.
Reference checks generally occur late in the hiring process, most often after a candidate has successfully completed interviews and is considered a top choice. Many employers only contact references once a verbal or conditional job offer has been made, pending the successful completion of the background and reference checks. This timing respects the candidate’s privacy, ensuring references are only contacted when a job is highly likely.
What Information Previous Employers Share
When a new employer contacts a former one, the information usually falls into two categories: employment verification and a detailed reference check. Employment verification is typically handled by the HR department, confirming basic data like the dates of employment, the employee’s official job title, and sometimes their final salary. Most companies readily provide this verification to confirm the accuracy of a resume.
A detailed reference check seeks feedback on a former employee’s job performance, work habits, and suitability for the new role. However, many companies have policies that strictly limit the information former managers or supervisors can share, often restricting them to only the basic employment verification details. This limitation reduces the former employer’s legal exposure to potential lawsuits from the former employee.
One of the most valuable pieces of information a former employer might share, even under a restricted policy, is the employee’s eligibility for rehire. This is often a simple “yes” or “no” answer, which provides a straightforward indicator of the employee’s standing when they left the company. If the former employer maintains written performance evaluations, they may legally disclose factual, documented performance feedback, but they must stick to verifiable records and avoid sharing personal opinions or subjective assessments.
Legal Limitations on Disclosing Performance Details
The primary reason employers are cautious about sharing detailed performance information is the risk of legal liability. Defamation occurs when a former employer makes a false statement of fact about an employee to a third party, and that statement harms the employee’s reputation or ability to find new work. This risk motivates many companies to adopt “no comment” or verification-only policies.
Some states have enacted “reference immunity” laws that grant employers qualified immunity from liability when sharing information. This protection applies if the employer shares truthful information in good faith and without malice. However, this legal immunity is not absolute and does not protect an employer who knowingly provides false or deliberately misleading information.
Most large organizations centralize reference requests and train their staff, usually within HR, to provide only factual, objective information. While it is not illegal for employers to share truthful information about job performance and attendance, the fear of litigation often compels them to err on the side of caution. This preference for documented facts over personal opinions is a protective measure against potential claims.
Strategies for Managing Potential Negative References
Job seekers who anticipate a negative reference should attempt to verify what a previous employer or manager intends to say. This can be done by having a trusted contact call or by utilizing a professional reference checking service. This allows the applicant to understand the specific nature of the feedback before it reaches a potential new employer.
If a negative reference is unavoidable, the applicant should prepare a concise, professional explanation for the new employer. This involves being upfront about the situation without making excuses or criticizing the former company. Addressing the issue proactively demonstrates maturity and accountability to the hiring manager.
Applicants can outweigh a potential negative reference by providing positive professional references. These references should include former managers, supervisors, or colleagues who can provide detailed, positive anecdotes about the applicant’s work performance. Providing references who offer a full picture of professional capabilities can help mitigate the impact of a single negative comment.
If the negative reference is factually inaccurate, the applicant may contact the former employer’s HR department to request a correction. In cases where a company has a formal “verification only” policy, it may be possible to enforce that policy and have the negative commentary retracted.