Hello,
Employers are free to say pretty much anything about an employee as long as they do not provide false and defamatory facts, or reveal information that is bound by some contractual or court obligation to keep from disclosing.
For example, if the employee sued the company and the settled matter contained a non-disclosure agreement, the employer would have to honor that agreement. Similarly, if an employer just made up lies about the employee, the employee could sue for slander or liable.
Some States have laws which discourage employers from providing any references. Employers do not find it worth the hassle of providing references because of even a small potential danger of suit. Arizona law, however, provides immunity in many cases to employers who supply information concerning an employee's job performance, evaluation, professional conduct or reason for termination provided the employer supplies the information in good faith. (A.R.S. ยง 23-1361 (C)).
Despite this law, some employers might still choose to have policies in place prohibiting references. But this is a private decision of business practices, not a legal obligation.
I hope this helps!
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Please keep in mind that information in this forum is for informational purposes only. It is not legal advice and does not constitute creation of an attorney client relationship. Before acting on any such information, you are always advised to consult with an attorney licensed to practice in your jurisdiction who can take the time to review all the facts and laws relevant to your situation.
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