If you’ve lost your job in Iowa, you may be concerned about what your former employer will say to companies that ask for a reference. References often make the difference between landing a new job and receiving a rejection letter. If a former employer is giving out false or misleading information about you, it could doom your job search.
In Iowa, employers who provide certain kinds of reference information to prospective employers who ask for a reference are protected from lawsuits brought by the employee. However, if a former employer acts maliciously or otherwise crosses the legal line, and you lose job opportunities because of it, you may have a legal claim.
References and Defamation Claims
To prove defamation, the plaintiff (the person bringing the lawsuit) must show that someone made false and damaging statements about him or her. In the context of employment, defamation claims nearly always focus on statements the employer makes about the employee once the employment relationship ends. Typically, a former employee claims that the employer made false, negative statements about the employee’s performance to a prospective employer who called for a reference, and the prospective employer decided not to offer the employee a job (or to rescind a job offer) because of the poor reference. (To learn more about defamation claims, see Defamation Lawsuits: Do You Have a Case Against a Former Employer?)
References Laws in Iowa
An Iowa employer is immune from liability (that is, the employer may not be sued) for providing work-related information about a current or former employee, upon the request of the employee or someone whom the employer reasonably believes is a representative of a prospective employer. However, the employer can lose this protection by acting unreasonably. An employer acts unreasonably when the work-related information:
- violates the employee’s civil rights
- is knowingly provided to someone who has no legitimate interest in receiving it
- isn’t relevant to the inquiry being made
- is provided maliciously, or
- is provided with no good faith belief that it is true.
Getting a Reference
While some employees wish their former employers would keep quiet, some employees face the opposite problem: They want a former employer to provide information, but the employer isn't willing to speak up. Some employers are so fearful of defamation claims that they won't give references under any circumstances. Others take a “name, rank, and serial number” approach, providing only an employee’s dates of employment, job title(s), and salary information.
To remedy this situation, some states have enacted service letter laws. These laws require employers to provide former employees with certain basic information, in writing, about their employment. However, Iowa doesn’t have a service letter law.
If you want a former employer to provide a detailed reference, you might consider signing a release: an agreement giving the employer permission to respond to prospective employers who call for a reference, and giving up your right to sue the employer for anything said as part of that process.
However, this makes sense only if you are absolutely certain that the reference will be positive. It may be worth giving up your legal right to sue in exchange for a reference that will help you land a position, but you don’t want to sign away your rights only to find that you have no recourse against a former employer who damaged your reputation and job prospects. For more information, see Getting Good Job References. For information on your legal rights during the hiring process, see Nolo's articles on Getting Hired.