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Civil Code Section 47(c) specifically protects employers when they are asked if an ex-employee is eligible for rehire. The code section provides a "privilege" to answer that question "yes" or "no." Civil Code Section 47(c) was amended effective January 1, 2019 to additionally ensure employers will not be sued for defamation by an alleged harasser as a result of a job reference. Employers are now permitted to reveal in a job reference whether the individual is not eligible for rehire because the employer determined that they engaged in sexual harassment.
Employers nonetheless often are reluctant to provide any references on ex-employees for fear of other types of retaliatory claims of defamation and slander. It isn't a good idea, however, to set a blanket policy of providing no references at all.
For example, take the case of an employee who assaults a patient in a nursing home and is fired. If that employee then applies for the same position at a second nursing home, it could be argued that the first employer should be held liable for "negligent referral" if it refuses to provide any information. This is, however, an extreme example and the more frequent situation is an ex-employee who simply wasn't a very good worker and ultimately was terminated. Civil Code Section 47(c) provides a way to communicate your unhappiness about the ex-employee without going into details.
It is best to establish guidelines on how all references will be handled to avoid awkwardness and confusion: All requests for references should be directed to a specific individual(s). Verify the caller's identify. For example, call the company back and ascertain the caller's status. Establish whether requests must be in writing or may be verbal. Decide exactly what information you will provide. For example, dates of employment, position held and eligibility for rehire.