Keep me logged in until I sign out. Approximately twenty states prohibit employers from engaging in blacklisting. Blacklisting consists of intentionally taking action aimed at preventing an individual from obtaining employment. Truthful statements concerning an individual's ability to perform the job in question are not considered to be blacklisting. The manner in which a reference is made and its content can give rise to employer liability under state tort law relating to defamation, intentional interference with a prospective employment contract, intentional infliction of emotional distress, or negligent misrepresentation.
Defamation occurs when one person's false statement injures the reputation of another person.
However, most states recognize a qualified privilege defense to defamation for references to prospective employers given in good faith. Providing false information to a prospective employer with the intent of causing an applicant to lose the job constitutes intentional interference with prospective employment contract. Disclosure of private personal matters unrelated to work can result in an invasion of privacy or intentional infliction of emotional distress claim. Lastly, a false statement that causes a loss of money can be grounds for negligent misrepresentation. To be safe, an employer should limit the number of individuals authorized to provide references on its behalf.