Published June 2005

New law makes honest references safe again

Any manager will tell you that the hiring process is one of the most important tasks undertaken by a company.

Finding just the right person to fill a position, one with the right qualifications, abilities and attitude to fit not only the job description but also the company culture, can have a huge impact on production and morale.

Unfortunately, any manager also will tell you that the hiring process can be one of the most difficult tasks undertaken by a company, one surrounded by a minefield of doubt as resumes are sifted through, interviews are set up and the final selections are made.

That minefield is triggered by the realization that just because a candidate looks good on paper and interviews well in person is no sure indication of how he or she will do on the job.

And for the past decade or so, getting a handle on just how well a candidate does “on the job” has been hampered by the fear of lawsuits on the part of former employers asked to give references.

Since the early 1990s, when juries began awarding big bucks to plaintiffs who believed they had lost prospective jobs because of bad references, the threat of employer liability has stopped the flow of honest — and necessary — information passing between former employer and prospective employer.

As Kris Tefft, general counsel for the Association of Washington Business, put it, employers were advised by counsel “to keep mum when asked for a reference on an employee, giving rise to a name-rank-serial number mentality.”

But thanks to recent action in Olympia, would-be employers can expect more the next time they call one of the “references given upon request.”

In April, Gov. Christine Gregoire signed into law House Bill 1625, which protects employers who give job references on current or former employees.

Under the legislation, employers who give a truthful reference based on job-related information need not fear legal retribution.

The only way an employee could take legal action would be if he or she could prove the employer knowingly lied, deliberately misled or acted with reckless disregard for the truth in giving the information.

The legislation also advises, but does not require, that employers keep a written record of job reference information given out on an employee — a record that should be kept in the employee’s personnel file, where the employee may view it.

With the new law, employers are empowered to speak honestly about an employee’s “on the job” abilities, and employees still have the ability to sue for damages should an employer stray from the truth. For those looking to hire, the new law puts into play an important tool for selecting a new member of the company team.

The legislation can be viewed as a “win-win for all interested parties,” noted Tefft, adding that “as more accurate references are given out, problematic employees will stop getting passed from job to job, while good employees will get the recognition they deserve.”

And prospective employers will get the good employees they’re searching for.

— Kimberly Hilden, SCBJ Assistant Editor

Back to the top/June 2005 Main Menu