Reference checking is an important source of information about job candidates. Failure to check references can lead to negligent or wrongful-hiring lawsuits. When providing references, the legal concept of qualified privilege means that if honest, fair, and candid references are given, the reference giver is protected from litigation, even if negative information is imparted about the candidate. Providing falsely positive references can lead to charges of negligent misrepresentation by subsequent employers.

Fear of civil litigation has led some Canadian companies to adopt a policy of “no references” or to only confirm a former employee’s position and dates of employment. LO.1