Business and Labor

Immunity proposed for employer referrals

Employers providing job references for a current or former employee would receive civil immunity under a bill discussed during a Business and Labor Committee hearing Feb. 6.

LB959, introduced by Fremont Sen. Charlie Janssen, would provide absolute immunity to any employer who discloses factual information during a reference check. Janssen said the protection is necessary to encourage a free flow of information.

“Many companies are reluctant to offer referrals beyond the basic information,” Janssen said. “Pertinent information is withheld because it is not worth the potential for a time-consuming and expensive legal challenge.”

Employers who are shown to have disclosed information with actual malice or deliberate intent to mislead would not be granted immunity.

Steve Sexton of Fremont testified in support of the bill, saying the threat of legal action has caused a shift away from candid and honest referrals.

“Where competition is extremely tough, it can be a disservice to the candidate to only provide bland biographical information,” Sexton said.

Kathleen Neary, representing the Nebraska Association of Trial Attorneys, testified in opposition to the bill, calling it a solution to a problem that does not exist.

“There is no onslaught of cases here,” Neary said. “Extending immunity to employers is not a road the state wants to go down.”

The committee took no immediate action on the bill.

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