When a job applicant applies or interviews for a new job the prospective employer would often like to speak to the applicant’s current or former employer. But if the employee is still employed the prospective employer will likely cause the applicant to be fired or terminated by contacting the current employer and informing them the applicant is applying for a new job. A prospective employer interviewing an applicant might also expose itself to liability by contacting the applicant’s current employer—as well as damaging its reputation and ability to attract other qualified job applicants.

But a prospective employer may contact the former employer (or other reference) of an applicant. And the former employer (or reference person) may freely state truthful facts about the applicant—or state the former employer or reference’s opinion of the applicant—but cannot make false or untruthful statements of fact about the applicant. If a former employer or applicant makes false or untruthful statements of fact—statements that are provably false—the former employer or reference may be subject to liability for defamation (slander or libel).

In Pennsylvania, prospective employers must navigate the delicate situation of reference checks with caution. Contacting a job applicant's current employer can lead to unintended consequences, such as the applicant being terminated from their current job. Therefore, it is common practice for prospective employers to refrain from reaching out to an applicant's current employer without explicit permission from the applicant. However, prospective employers are generally allowed to contact an applicant's former employers or other references. When providing information about an applicant, former employers or references are legally permitted to share truthful facts and their opinions. Nonetheless, they must avoid making false statements. If a former employer or reference makes statements about an applicant that are both false and damaging to the applicant's reputation, they could be held liable for defamation, which includes both slander (spoken defamation) and libel (written defamation). It is important for all parties to ensure that any information shared during the reference check process is accurate and truthful to avoid legal repercussions.