However, this doesn't mean an employer can talk maliciously about a former employee and tell untruths in an attempt to embarrass and scuttle future job opportunities. To avoid problems, think first before disclosing private information concerning others. For employers, potentially damaging information in performance reviews and comments to prospective employers should be reviewed by a supervisor. Avoid having damaging memos about a person read by nonessential third parties. In many states, such as Connecticut, any dissemination of private employment data to prospective employers other than the dates of employment, position held and latest salary figures is illegal.
Many states prohibit the dissemination of confidential private medical information as well.
Avoid disseminating any information about someone that can remotely be considered private. Do not repeat unconfirmed gossip or trade gossip, especially about the financial condition of a competitor, business or product. If you might be a victim of defamation, speak to a lawyer immediately to protect your rights. Never stand in the way of a terminated employee's future employment. Maintain tight control over personnel files and avoid distributing personal information without an employee's consent.