Pretty sure my former employer is giving me bad references and costing me job offers - what can I do?

I was let go from my marketing director position 4 months ago during a "restructuring." Left on decent terms, or so I thought. Since then I've had 6 final-round interviews where I was told I was the top candidate, only to be rejected after the reference check phase.

Two recruiters have hinted that "something concerning" came up during reference checks. One even said "you might want to look into what your former employer is saying about you."

I listed my direct supervisor as a reference (with her permission), but I suspect my former CEO (who I did NOT list) is being contacted and saying negative things. We had significant disagreements about marketing strategy before I left, and he took my departure personally.

Is there any way to find out what's being said? Can I sue for defamation? I'm in California and this is destroying my career.

Employment attorney here. This is a frustrating situation but you do have legal options. California has some of the strongest protections against bad-faith references.

Key legal protections:

• California Labor Code Section 1050: Makes it a misdemeanor for an employer to prevent or try to prevent a former employee from getting a job through misrepresentation. You can also sue for civil damages.
• Defamation: If your former employer is making false statements of fact (not just opinions) that damage your reputation, that's actionable defamation.
• Defamation Per Se: Statements that harm someone in their profession are considered defamation per se in California, meaning you don't have to prove actual damages - they're presumed.
• Tortious Interference: Intentionally interfering with your prospective employment relationships is also actionable.

The challenge is proving what's being said. I'd recommend using a reference checking service first to document the actual statements.

Thank you. What's a reference checking service? How does that work?

Also, doesn't the employer have some kind of privilege or protection for giving references? I've heard they can say whatever they want as long as they believe it's true.

HR professional here with 20 years experience. Most large companies have strict policies to only confirm dates of employment and job title specifically to avoid defamation liability. If someone at your former company is going off-script and providing substantive negative information, that's likely a policy violation in addition to a potential legal issue.

As for the "qualified privilege" question - yes, employers have a qualified privilege for good-faith references. But that privilege is lost if:

• The statements are knowingly false
• The statements are made with reckless disregard for the truth
• The statements are made with malice (intent to harm you)
• The information is shared with people who have no legitimate need to know

Given that you mentioned personal animosity with the CEO, malice could potentially be established.

There are services (like Allison & Taylor, CheckYourReference, etc.) that will call your former employer pretending to be a prospective employer conducting a reference check. They document exactly what is said - word for word.

It's completely legal. They're not recording without consent (in states where that matters) - they're just documenting a conversation. The person giving the reference doesn't have an expectation that a reference check is private.

Cost is usually $75-150 per reference checked. Worth every penny if you're trying to build a case.

I went through this exact thing last year. Used one of those reference checking services and discovered my former manager was telling people I had been "let go for performance issues" when I had actually resigned. She also said I was "difficult to work with" and "had problems with authority."

Armed with that documentation, my attorney sent a cease and desist letter. Company's lawyers made her stop immediately and they settled with me for $35,000 (NDA so I can't say more).

The documentation is everything. Without proof of what they're saying, it's just your word against theirs.

Just chiming in to say this is more common than people think. I work in tech recruiting and I've seen at least a dozen candidates get torpedoed by vindictive former managers. It's really frustrating because we can't always tell the candidate exactly what was said.

Pro tip: if a recruiter says something vague like "something came up in references" - they're trying to help you. Pay attention.

I contacted one of those reference checking services. They're going to make calls next week and I'll report back with what they find.

In the meantime, I have another interview coming up. Should I proactively address this? Like mention that I had disagreements with my former CEO and he may give a biased reference?

Delicate situation. I would NOT proactively bring it up during interviews - it can come across as making excuses or badmouthing a former employer.

Instead:

• Provide specific references who you know will be positive (colleagues, direct reports, clients)
• Request that they only contact the references you provide
• If they insist on contacting your former company directly, ask that they speak to HR only for verification of employment

Many companies will respect these requests, especially in a competitive job market.

Just playing devil's advocate here - is it possible the reference isn't the problem? 6 rejections after final rounds could also indicate:

• Background check issues (credit, criminal records, verification of credentials)
• Salary expectations that don't align once they see your history
• Internal candidates being selected at the last minute
• Budget cuts eliminating positions

Not saying you're wrong - the recruiter hints are concerning - but make sure you're not overlooking other possibilities.

Fair point, but two recruiters specifically said "reference check" was the issue. One literally said "you might want to look into what your former employer is saying." That's not subtle.

My background is clean - no criminal record, perfect credit, all credentials verified. And 6 for 6 failures after final rounds is statistically unlikely to be coincidence.

Quick clarification on the "truth as defense" point that comes up a lot in these threads. Yes, truth is an absolute defense to defamation. BUT there are two important caveats:

1. The employer has to prove the statement is true, not just that they believed it to be true. "I thought he was stealing" isn't the same as "he was stealing."

2. Even true statements can form the basis of other claims like tortious interference if they're being shared maliciously to harm you rather than in good faith to help the prospective employer.

So don't assume you have no case just because the employer might claim they were being truthful.

Following this thread bc Im in a similar boat. Quick question - what if they're not saying anything explicitly negative, just marking me as "not eligible for rehire"? Is that defamation?

I was laid off from a bank last year and I KNOW they're telling everyone im not eligible for rehire even though I never did anything wrong. Just budget cuts.

@not_eligible_rehire - Good question. "Not eligible for rehire" is a gray area. It's technically a statement of fact about company policy, which makes it harder to challenge as defamation.

However, if the designation is FALSE (meaning you ARE eligible for rehire per company policy, or you were never properly designated as ineligible), then it could be actionable. Also, if the "not eligible" status was assigned in bad faith or violation of company policy, you might have claims.

I'd recommend:

• Request your personnel file (you have the right to this in CA)
• Check what the actual rehire status says in writing
• Review the company's policies on when someone is marked ineligible

If they're saying you're ineligible when you're not, that's a false statement of fact.

Subscribing to this thread. OP please come back with the reference check results! Really curious what you find.

UPDATE Got the reference check report back. It's worse than I thought.

When the service called my former company's main line and asked for a reference for me, they were transferred to the CEO directly (not HR). He said:

• I was "terminated for cause" (FALSE - I was laid off in a restructuring)
• I had "serious performance issues" (FALSE - I exceeded my targets every quarter)
• He "would not recommend" hiring me
• I was "difficult to manage" and "resistant to feedback"

The first statement is objectively false and provably so - I have my separation agreement that says "position eliminated." The others are false too but harder to prove.

I'm meeting with an attorney next week. This is clear defamation, right?

This is a strong case. Saying you were "terminated for cause" when you have a separation agreement showing position elimination is a false statement of fact, not opinion. That alone could constitute defamation per se because it directly harms your professional reputation.

The "performance issues" statement may also be actionable depending on whether it can be characterized as fact or opinion, and whether you can prove it's false (sounds like you have documentation of meeting targets).

Key items to bring to your attorney meeting:

• The reference check report
• Your separation agreement
• Performance reviews and any documentation of meeting/exceeding goals
• Documentation of the 6 job rejections and any communications from recruiters about reference issues
• Any emails or evidence of the CEO's animosity toward you

Your damages include lost income from the positions you didn't get, plus potentially punitive damages if malice is established. Good luck.

Wow that's blatant. "Terminated for cause" when you have a separation agreement saying otherwise is just stupid on his part. He handed you a lawsuit on a silver platter.

I had a similar situation 3 years ago (different state). My attorney sent a demand letter and they folded within 2 weeks. Didn't even have to file. They know they're exposed when there's documentation.

As an HR person, this makes me cringe. The CEO going rogue and giving detailed negative references is exactly what our policies are designed to prevent. He's exposing the company to massive liability.

When your attorney contacts them, I wouldn't be surprised if their own HR and legal teams are furious with him. This is HR 101 - you NEVER go off-script on references.

Not to be that person, but how do we know the reference check service is giving accurate reports? What's stopping them from making stuff up to justify their fee?

Has anyone verified these services are legit?

@skeptical_karen - Fair question. The reputable services (Allison & Taylor has been around since 1972) have attorneys who will vouch for their documentation in court if needed. They wouldn't stay in business if their reports couldn't withstand legal scrutiny.

Also, some services offer to record the calls (where legal) or have you listen in real-time. That said, always do your due diligence on any service you use.

OP - one more thing to document. Can you get any of those recruiters who hinted at reference issues to put something in writing? Even an email saying "we've decided to go another direction due to information received during reference checks" could be valuable.

They might not name the source or repeat what was said, but having written confirmation that references were the issue helps establish causation for your damages.

Good call. I reached out to the two recruiters who were most direct with me. One declined to put anything in writing, but the other sent me an email saying "We were very impressed with your candidacy but received concerning feedback during the reference verification process that led us to pursue other candidates."

Not super specific but it's something. Attorney meeting is tomorrow!

This thread is gold. I'm not in CA but I'm pretty sure I'm dealing with the same thing. Anyone know if the laws are similar in Illinois?

@midwest_worker - I'm only licensed in CA so can't give IL-specific advice, but defamation law exists in every state. The elements are generally similar: false statement of fact, publication to third party, fault, and damages.

Illinois also has its own Employment Record Disclosure Act that limits what employers can disclose and provides protections for employees. Worth looking into or consulting with an IL employment attorney.

Healthcare worker here. This happens SO much in nursing. Managers hold grudges and then trash talk you to other hospitals. The nursing community in any given city is small - word travels fast.

I used Allison & Taylor after getting rejected from 3 hospitals post-interview. Found out my old charge nurse was saying I "abandoned patients" when I actually gave proper notice and worked out my full 2 weeks. Sent a cease & desist through an attorney I found through this forum actually. She stopped immediately.

Got hired at my dream hospital 2 months later. DOCUMENT EVERYTHING.

UPDATE Following up on my question from before. I requested my personnel file like @EmploymentAtty_LA suggested. Turns out I WAS marked as eligible for rehire in my file, but when the reference check service called, HR said I was "not eligible."

So they're literally saying the opposite of what's in my own file. That's gotta be defamation right?

@not_eligible_rehire - Yes, that's potentially actionable. You now have documentary evidence that they're making a false statement of fact. The personnel file shows one thing, they're telling prospective employers another.

I'd suggest consulting with an employment attorney in your state. This seems like a strong cease and desist situation at minimum. You can find templates for these at our demand letter resources if you want to start there.

Paralegal here. Quick note on damages for anyone following this thread - in defamation per se cases (which these professional reputation cases usually are), you don't have to prove specific dollar amounts lost. Damages are presumed.

BUT, if you CAN document specific lost opportunities and their value, your recovery will be much higher. So keep track of:

• Jobs you were rejected from and their salary ranges
• Time spent unemployed or underemployed
• Any mental health treatment costs from the stress
• Costs of the reference checking services, attorney fees, etc.

UPDATE Met with the attorney. She said I have a very strong case and is taking it on contingency (she'll get a percentage of any settlement/judgment).

She's drafting a demand letter citing the false "terminated for cause" statement, the documented pattern of reference-related rejections, and Labor Code 1050. Asking for $150K but she says these usually settle for less.

Will update when we hear back. She said most companies respond within 2-3 weeks once their legal/insurance gets involved.

Contingency is great - means the attorney thinks you'll win. Good luck OP! Keep us posted.

Reading this thread with great interest. My former employer isn't saying false things exactly, but they're giving "damning with faint praise" references. Like "he showed up on time" and "he completed assigned tasks" when I was actually their top salesperson for 3 years.

Is that actionable? It's technically true but misleading as hell.

@rage_against_HR - That's a tougher case. "Damning with faint praise" isn't really actionable because the statements are true. They're just... incomplete.

Your best bet is to flood prospective employers with OTHER references who will enthusiastically describe your sales performance. Colleagues, clients, other managers who saw your numbers. Make the weak reference an outlier rather than the main data point.

Just want to share my success story since this thread has been so helpful. Found it when googling my situation a few months ago.

My timeline:

• June: Started suspecting bad reference after 4 rejections
• June: Used reference check service ($125) - found out former boss was saying I was "asked to resign"
• July: Consulted attorney, sent demand letter citing defamation
• July: Company responded through their lawyer, denied everything
• August: My attorney sent the reference check documentation
• August: Settlement offer of $40,000 plus agreement to only provide dates/title

Total time from reference check to settlement: 8 weeks. Don't let them get away with it.

been lurking this thread for awhile. finally made account to ask - what if your former employer is a small busness with no HR? my old boss IS the owner and hes definitely trashing me. no policy to violate, no HR to complain to, no corporate lawyers to rein him in.

@lurker_posting - Small businesses are actually often easier to deal with in some ways. They usually don't have the resources for a protracted legal fight, and the owner's personal assets may be at risk if it's a sole proprietorship or he personally defamed you.

A strongly worded cease and desist letter can be very effective because he'll realize the potential exposure. Just be aware that collecting a judgment could be harder if the business doesn't have deep pockets.

But the primary goal is usually just getting them to stop, right? A C&D often accomplishes that regardless of company size.

UPDATE Following up again - I sent a demand letter using the template from this site (modified for my situation). Attached a copy of my personnel file showing "eligible for rehire" and the reference check report showing they said the opposite.

Got a call from their HR director two days later. Full apology, blamed it on a "systems error," agreed to correct the record and provide neutral references going forward. No money but honestly I just wanted them to stop sabotaging me.

Got a job offer last week. Thanks everyone!

@not_eligible_rehire - That's awesome, congrats! "Systems error" my ass but at least they fixed it.

Still waiting on a response from my former employer. Attorney says silence after 3 weeks isn't unusual - they're probably going back and forth with their insurance carrier.

Ive been trying to figure out what my old job is saying for MONTHS. just orderd a refernce check from Allison taylor, will report back. crossing fingers its nothing but based on how my job search has been going I know something is up

Jumping in here as another employment attorney (SF Bay Area). Great thread with solid advice.

One thing I want to add about tortious interference claims, since they've been mentioned a few times. These can be powerful because:

1. You don't necessarily need to prove the statements were false - just that they were made with improper intent to interfere with your job prospects

2. Even "true" statements can support a tortious interference claim if shared maliciously

3. The qualified privilege that protects good-faith references doesn't apply when there's malice

If you have evidence of personal animosity (emails, witnesses to conflicts, etc.), tortious interference might be a stronger claim than defamation in some cases. Check out the tortious interference resources here for more detail.

Question - does anyone know if LinkedIn recommendations can help counteract a bad verbal reference? I have like 15 glowing recommendations from colleagues and clients but I'm still getting rejected after reference checks.

@marketing_carolyn - LinkedIn recs are nice but most hiring managers view them skeptically since they're public and people only post positive ones. A live reference call where someone says something negative will override 100 LinkedIn recommendations unfortunately.

I'd recommend proactively offering to connect hiring managers with your recommenders directly. "I notice you might be contacting references soon - I'd love for you to speak with [names] who can speak to my work. Here are their direct numbers."

UPDATE Finally got a response. Their insurance company is involved now and they're offering $50K to settle. My attorney thinks we can get more given the documentation and is countering at $100K.

In the meantime, I have another interview next week. Making sure they only contact my provided references this time!

UPDATE got my reference check back. My old manager said i "left without giving proper notice" which is total BS - I gave 3 weeks notice and have the emails to prove it! Also said I "had attendance issues" when I literally had perfect attendance for 2 years.

calling a lawyer tomorrow. thank you all for the info in this thread

Bookmarking this thread. Just started a new job but leaving my previous company on bad terms (not my fault - new management cleaned house). Going to get a reference check done proactively so I know what they're saying before my next job search.

Is it weird to do a reference check when you're not actively job hunting? Better to know now right?

@data_rachel - Not weird at all. Actually pretty smart. If they're saying something negative, you can address it now (send a C&D, work out an agreement, etc.) rather than discovering it after getting rejected from your dream job.

Proactive reference checks are probably 20% of the business for these services. Smart people protecting themselves.

Just found this thread through Google. OP, did your situation ever get resolved? I'm in almost the exact same position - marketing VP, let go in "restructuring," can't get hired anywhere despite great interviews.

Going to order a reference check tonight based on this thread.

@StuckJobSeeker_2026 - Still in negotiations but getting close. Current offer is $70K, my attorney thinks we can get to $80-85K. Insurance company doesn't want to go to trial.

Also good news - got a verbal offer on that job interview! They only contacted my provided references per my request. Waiting on formal offer letter but salary is actually 15% higher than my old job.

Light at the end of the tunnel. DO the reference check - knowledge is power.

Does anyone know if this applies to teachers? I left a private school after a disagreement with the headmaster and I'm pretty sure he's blackballing me to other schools in the area. Teaching community is small - everyone knows everyone.

@katie_teacher - Absolutely applies to teachers. Same laws protect you. The "small community" aspect actually makes tortious interference easier to prove sometimes because you can document a pattern of being rejected by schools where you know your former employer has connections.

Private schools are particularly vulnerable to defamation claims because they're businesses with reputations to protect. A credible threat of a lawsuit often gets quick results.

What's the statute of limitations on this? I think my former employer (left in 2023) has been giving bad references but I only just realized it might be the problem. Is it too late to do anything?

@wondering_winston - In California, defamation has a 1-year statute of limitations from when the statement was made (or when you discovered it). Tortious interference with prospective economic advantage is 2 years.

BUT - each time they give a bad reference is a new act. So even if the first bad reference was in 2023, if they gave one last month, that's a fresh claim. Get a reference check done ASAP to document current behavior.

Also, the "discovery rule" might extend the timeline if you couldn't reasonably have known about the defamation until recently.

UPDATE Settlement reached! $85,000 plus a commitment that only HR will respond to reference requests with dates and title only going forward. Also got them to agree to a neutral "position eliminated during restructuring" statement if asked about reason for departure.

Can't discuss details beyond that (NDA) but I'm very satisfied with the outcome. Total time from demand letter to settlement: about 3 months.

Also formally accepted the new job offer. Start in two weeks. Salary is $165K compared to $145K at the old job. So in a weird way, the CEO's bad behavior ended up working out for me financially.

Congrats OP!! This is exactly how these should resolve. You documented, you lawyered up, you got paid. AND you got a better job. Beautiful.

This thread should be pinned. Perfect example of how to handle a vindictive former employer. Reference check service -> documentation -> attorney -> demand letter -> settlement. The playbook works.

UPDATE Circling back to thank everyone in this thread. Ordered that reference check back in October - found out my former CMO was telling people I "struggled with deadlines" and "required significant oversight" - complete lies.

Sent a cease and desist in November. They lawyered up but quickly agreed to neutral references only. No settlement (didn't push for one, just wanted it to stop).

Got a new job offer last week. This thread saved my career. Thank you all, especially OP for documenting your journey.

UPDATE My situation resolved too! Lawyer sent demand letter in october, they denied everything at first. Then my lawyer sent the reference check report plus my email proof that I gave proper notice.

Settled for $25K in december. not as much as OP but honestly worth it for the vindication. Plus they have to give neutral references now.

New job starting next month. Better pay, better culture. Thanks to this thread for showing me what to do.

Just popping back in to say the new job is going great. Been here 2+ months now, team is fantastic, already got positive feedback from my new CEO (imagine that - a CEO who isn't a vindictive jerk).

For anyone finding this thread in the future: DON'T GIVE UP. If you suspect you're getting bad references:

1. Get a reference check done immediately ($75-150 well spent)
2. Gather all your documentation (separation agreement, performance reviews, emails)
3. Consult an employment attorney (many do free consultations)
4. Send a demand letter with the evidence
5. Most employers/insurers will settle rather than go to trial

This thread has helped a lot of people. Glad I could contribute. Good luck everyone!

Final Update - Issue Resolved!

Wanted to close out this thread properly and share the final outcome for anyone who finds this in the future.

Summary of Resolution:

• Settled with former employer for $85,000 plus agreement for neutral references going forward
• New job is going fantastic - been there 3+ months now with great feedback from leadership
• Salary at new position is $165K vs $145K at old job - actually came out ahead
• Total timeline from first suspicion to resolution: approximately 5 months

What worked: Reference checking service to document false statements, employment attorney on contingency, demand letter with strong evidence, and leveraging the company's insurance carrier's desire to avoid litigation.

Thank you so much to everyone who contributed to this thread - especially @EmploymentAtty_LA, @HRDirector_Anon, @RefCheckPro, and all the others who shared their experiences. This community gave me the knowledge and confidence to fight back when my former CEO was trying to destroy my career. I never would have known about reference checking services or Labor Code 1050 without this forum.

For anyone finding this thread in a similar situation: DON'T GIVE UP. Document everything, get a reference check done, consult an attorney, and stand up for yourself. Most employers will settle rather than go to trial when confronted with evidence of false statements.

Marking this thread as RESOLVED. Good luck to everyone!