This introductory report provides an overview of the legal landscape applicable to automated reference checks.
Along with interviewing, reference checking is the most practiced and accurate method for assessing candidates. It is far more predictive of performance than a standard review of a candidate’s experience or education.
As more organizations are embracing digital reference checking, we have asked Littler Mendelson, the largest labor and employment law firm in the United States, to prepare a series of papers to discuss important issues that most organizations face regarding reference checking.
Despite certain protections provided in responding to reference inquiries, employers should be aware of legal risks that may arise in circumstances where a former employer fails to exercise caution when responding to such inquiries or engages in discriminatory and/or retaliatory conduct. Finally, employers need to be mindful of potential obligations under the FCRA and related state laws when relying on third parties to assist in conducting reference checks on their behalf.