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Check with your Department of Labor. Some states, like Michigan, have a law that protects employers when giving a reference, but there are some stipulations. The information must be truthful and not misleading, and must not violate any state or Federal Laws. FYI - Keep reference checks in a separate file from the employees' personnel file and keep in mind the employee has a legal right to see his/her references (they actually have a right to review their entire personnel file at least once a year and may request a copy of the file's contents). The company may set the number of times a year the employee may view their file - usually once or twice. And the employer may have a rule that the request be in writing and will give the employer up to one week to comply. I always sat in the room with the employee while they were looking through their file.

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