In general what are the rules or restrictions on 3rd party disclosure of information between two companies on an employee. For example, company A terminates employee, can company B obtain information from company A and if so to what degree? Is there any liability here for the companies?

Ann Kiernan and Rita Risser reply:

To avoid possible claims for defamation, the safest course is to say as little as possible. Confirm the dates of employment, job title, and that's all.

If you want to give more information, stick to objective, verifiable facts. For instance, don't say an employee had a good or bad attendance record, just state the fact that he missed 5 days in the last three months. Steer clear of subjective questions, such as those about the employee's attitude, reason for leaving or weaknesses.

And, if you volunteer any positive information, be sure to disclose all negative information, as well.

Learn more about references in our training program Hiring the Best: Interviewing for Top Talent.