8 min read

The Liability of the Referee: Why Managers are Scared to Give Feedback

You have likely been in this spot before. The phone rings, and a recruiter asks about a person who used to work for you. You want to be helpful, but you also feel a knot in your stomach. You know this person was not a good fit. You know they struggled with their tasks. But can you say that?

Many managers choose to say nothing at all. They give a "name, rank, and serial number" response. They confirm the dates of work and the job title. Then, they hang up. This silence happens because of a growing fear in the business market: referee liability.

The Liability of the Referee: Why Managers are Scared to Give Feedback

What is Referee Liability?

Referee liability is the legal risk you take when you give a reference for a former worker. It is not just about being mean. It is about the legal fallout of your words. If you say something that prevents a person from getting a new job, they might sue you. On the other hand, if you give a glowing report for a dangerous or dishonest worker, the new employer might sue you if something goes wrong.

You are caught in the middle. You have a duty to be honest, but honesty feels like a trap. This fear keeps many managers from providing references that actually help the hiring process.

The Defamation Risk in Providing References

The biggest fear for most managers is a defamation claim. Defamation happens when you say something false that hurts someone’s reputation. In the context of a job reference, this usually means saying a worker was bad at their job when you cannot prove it with facts.

To protect yourself, you must understand how these claims work:

False Statements: If you state a fact that is not true, you are in trouble.
Opinion vs. Fact: Saying "I think he was lazy" is an opinion. Saying "He was fired for stealing" is a statement of fact. If he did not steal, that is defamation.
Malice: If a former worker can prove you said something bad just to hurt them, your legal defense gets much weaker.

Providing references should be a simple task. However, the risk of a lawsuit makes it feel like walking through a minefield.

The Danger of the Phone Call

For decades, the phone call was the standard way to check references. Recruiters like it because they can hear the tone of your voice. They can ask follow-up questions. But for you, the manager, the phone call is a high-risk zone.

When you speak on the phone, you might say things you did not plan to say. You might get too casual. There is no written record of exactly what was asked or what you answered. If a lawsuit happens later, it is your word against theirs.

Phone calls also lead to "off the cuff" remarks. You might mention a person’s personality or their personal life. These things are often not relevant to the job. Talking about them can lead to claims of bias or discrimination. This is why many companies now tell their managers to avoid phone references entirely.

How Structured Surveys Provide Employer Protection

If phone calls are dangerous, what is the alternative? The answer lies in data and consistency. When you use structured reference questionnaires to gather facts instead of feelings, you change the game.

Digital surveys provide a layer of safety that a phone call cannot match. Here is why they work:

Consistency: Every referee is asked the same set of questions.
Objectivity: Questions focus on skills and behaviors rather than personal opinions.
Record Keeping: There is a clear, written record of what was said.
Time to Think: You can review your answers before you hit "submit."

By using a system like Refhub, you move the process away from risky chats. You focus on the data that matters for the job. This is the best way to gain employer protection while still being helpful to the hiring community.

Best Practices for Giving Honest Feedback

You do not have to be afraid of giving honest feedback if you follow a few simple rules. Being a referee is a part of leadership, and you can do it safely.

Stick to the Facts: Only talk about things you have documented in performance reviews.
Avoid Personal Comments: Do not talk about a person’s health, family, or politics.
Be Fair: If you mention a weakness, mention a strength too.
Use a System: Do not take random calls. Ask the recruiter to send a formal link through a secure platform.
Stay Brief: You do not need to tell a long story. Answer the questions asked and stop there.

When you follow these steps, you reduce your referee liability. You provide value to the new employer without putting your own career at risk.

FAQs About Referee Liability

Can I be sued for giving a bad reference?

Yes, you can be sued, but that does not mean you will lose. If your feedback is honest, fact-based, and given without malice, you have a strong defense. Using a structured system helps prove your feedback was professional.

Is it illegal to give a negative reference?

No, it is not illegal to be negative. It is only illegal to be dishonest or to act with the intent to harm someone's career unfairly.

Why do some companies only give dates of employment?

Many companies do this to avoid any risk of a lawsuit. While it is safe for the company, it makes it hard for good workers to stand out. It also makes it hard for hiring managers to find the right talent.

How do surveys help with defamation risk?

Surveys limit the scope of the conversation. They keep you focused on job-related tasks. This makes it much harder for a former worker to claim you were being unfair or personal.

Keeping Your Business Safe from Legal Claims

The goal of any reference process should be truth and safety. You want to help the industry find the best people. At the same time, you must protect your business from unnecessary legal costs.

Referee liability is a real threat, but it should not stop the flow of information. By moving away from the "chatty" phone call and toward objective, digital tools, you can give feedback with confidence. You can be honest about a worker's performance without feeling like you are headed for a courtroom.

The shift toward structured feedback is not just a trend. It is a necessary change for a professional business environment. It protects the referee, the candidate, and the new employer.

Start Protecting Your Managers Today

If your managers are still taking random phone calls for references, your business is at risk. You need a system that handles these requests with care and logic. Refhub provides the tools you need to make the process safe and fast.

Do not let the fear of a lawsuit stop you from being a great leader. Use a platform that prioritizes objective data and clear records. This is the smartest way to handle the liability of the referee. Take the guesswork out of feedback and start using a system that works for everyone.

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