Follow these guidelines when developing reference check policies:

• Determine who in your company will respond to reference requests. Train supervisors to direct any reference requests to that individual.
• Be consistent when providing employee references. Your policy should name certain individuals within the company who are authorized to provide references. Managers and supervisors should understand that all requests for references must be directed to those with authority to provide the information.
• Create a waiver for former employees to sign at the time employment ends if they want you to release information to potential future employers.
• Do not provide standardized letters of reference to former employees. If you want to provide a letter of reference, draft it to reflect the facts about the specific employee’s performance.
• Verify a caller’s identity before providing any references by telephone. You can do this by telephoning the caller’s employer.
• Determine what information will be provided. Respond to the questions if they fall within your policy guidelines. If the inquiry goes outside the information your company decided to provide, inform the person that your company policy prohibits sharing that information.
• Determine if you will allow oral references or if you will require all references to be in writing. Create a form marked “confidential” for written references. The form can be sent or faxed to anyone requesting information. When returning the form to the employer who requested the reference, mark the envelope confidential. Returning the form by fax compromises the privacy of the information.
• State that references will be provided only to those with a need to know the information, such as a prospective employer’s personnel manager.
• Provide only truthful job-related information rather than personal data. It may be helpful to create a form for terminating employees that shows the type of information commonly requested in reference checks, such as dates of employment, positions held and eligibility for rehire. This will help ensure that the information provided was truthful, relevant and based on proper documentation.
• Document each request for a reference, including the name, title and telephone number of the person requesting the information and the information provided.

The Reference Check Authorization authorizes an employer or former employer to release various information regarding an employee’s or former employee’s employment to potential employers.

• Reference Check Authorization

1. Civ. Code sec. 47(c)