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.

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.

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 lol.

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.

@TaxPro_CPA_32 - 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 tbh.

@ArbitratorLiz_28 - 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 if that makes sense, 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.

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.

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!

@LitigatorAnna_34 - 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.

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.

Fwiw 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 idk, 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 fwiw!

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 @gavel_banger_4, @citylawyer_6, @court_jester_42_11, 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!