Jane M. Shields

An important change to Pennsylvania employment law was enacted quietly on June 15

The law creates a new immunity for employers: they may disclose truthful information regarding the job performance of current or former employees to prospective employers.

The statute creates a presumption that disclosures made to a prospective employer are made in good faith. The presumption may be overcome only by clear and convincing evidence that the employer knew or should have known that the information was false or misleading or that disclosure was otherwise prohibited by law.

Employers have become increasingly leery of saying anything about employees to prospective employers for fear of being sued. The fear had a sound basis. Lawsuits by former employees against employers have become commonplace. In 1986, the Pennsylvania Superior Court upheld a $185,000 verdict in a case where an employer told a prospective employer that the employee was fired for failing to follow directions, was being investigated for forging checks, drank on the job and crashed a company car. If the new statute were in place in 1986, the outcome of that case may have been very different.

Businesses may now honestly respond to inquiries from prospective employers about the job performance of current or former employees. Of course, limits remain on what may be said. Health information, or other matters protected from disclosure by law, may not be disclosed. Finally, though, employers have some better protection against lawsuits aimed at them for telling the truth about the job performance of workers seeking employment.

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At a glance
Employers Speaking Freely About Employee Job Performance

A June 2005 ruling enables employers to honestly respond to inquiries from prospective employers about the job performance of current or former employees.

Employers, increasingly wary of divulging any information to prospective employers for fear of being sued, now have some better protection against such employee lawsuits.

Health information, or other matters protected from disclosure by law, still may not be disclosed.