Is it illegal to include a basic reason for termination on letter of recommendation for a previous employee?

Question

There was an employee who worked at my office from January until last month. At that time, the doctor we work for decided to terminate her because of many reasons. One of those reasons was because she could not guarantee him longevity due to personal reasons. He wanted to hire someone that would committ to working with him until his retirement in a couple of years.

The doctor agreed to give her a letter of recommendation for potential employers. In this letter he wrote a sentance that stated she was terminated because of his need to have enployees that can guarantee him lasting employment.

I received a phone call today stating that it is against HIPAA regulations to mention termination info in a letter of recommendation. Is that true? I have never heard of that before! Especially since the remainder of the letter emphasized how skilled she was. The doctor simply wanted to inform someone that she was not terminated due to any skill related issue.

Did he do wrong?

Just as an added note: this same person who called requesting the letter change also requested that we put that she started the month earlier instead. What potential employer calls to tell a previous employer to change the recommendation?

Thanks everyone for your answers. I didn't write the letter (I just typed it for him) so I didn't think there was anything wrong with the information given.

For those of you curious, she is going to school for another profession and knew she would be leaving in a 1 1/2 years when she graduates - or sooner if the class load was too demanding.

Answer 1

I ran a staffing agency for almost seven years, and most assuredly it is illegal to mention why someone was terminated, with rare exception. It is common practice for companies to give a sly "heads up" on a reference check by phone if the applicant is a very poor risk, but to put it in writing is leaving that employee more than ample cause for suit. The only legal questions pertain to past earnings, dates of employment and whether or not the applicant would be eligible for rehire at their previous company. The question could legally be asked at an interview for a potential job as to whether the employee is able to be a long term employee.

Answer 2

Reference Letter For Terminated Employee

Answer 3

I did some research on HIPPA and HIPPA is the civil rights regarding the disclusure of medical information. I found NOTHING stating legalities of employment terminations....only disclosure laws of patient medical records!

For you to receive a phone call stating it is against HIPPA regulations to state why person was terminated has nothing to do with HIPPA at all and sounds real fishy to me.

Also, unless you are the doctor or the office manager, whoever called you has no right to disclose further personal information to you regarding the previous employee as it was the doctor who wrote the letter and it is the doctor to whom they should be discussing this with.

I give out many letters of recommendation for employment and we do state why employees are no longer working for us. We do not actually state "terminated because..." as I just say "the employee is no longer employed with us due to..." I have had to disclose information to potential employers when they call for references though as I feel that honesty is the best route to go. I have been doing this 15+ years and I (we) have not had any law suits or phone calls stating otherwise.

I guess it all depends really on your states' labor laws. I know New Mexico doesn't have a law regarding termination information in recommendation letters but personal information cannot be asked during interviews.

I have attended quite a few HR conferences and classes over the years and have never been told anything being against the law to disclose why someone was terminated.

I personally, do not think the doctor did wrong and this former employee should be greatful that he gave her a letter at all as you don't have to. For a potential employer to contact you wanting you to change the start hire date sounds fishy to me....no potential employer will ask a former employer to change hire and termination dates period...that is tampering with evidence.

Wish I could be more help.

Answer 4

I think the doctor may be a caring , dedicated physician, but an HR expert he is not.
In a letter of recommendation, don't put the reason for termination. It can be misinterpreted. Honestly I think letters of recommendation are a waste of time. Unfortunalely, there are so many regulations and lawsuit happy people out there, that you try to do something to be "nice" you live to regret it.
Anyone can call your office to verify dates of employment and position.

Answer 5

You need to redo the letter. All you need to do is a simple recommendation letter, state the dates she was employed and not mention any termination. You could be opening yourself up to a lot of problems if you don't correct the errors, not only HIPAA but also labor and employment laws. Besides NO ONE can guarantee employment that is just ridiculous.

Answer 6

As the information provided is not health related information I am not sure how it would violate HIPPA regulations.

Employment verification and references are a tricky thing. The law basically says you can provide information as long as it is Job related;Based upon credible evidence; and Made without malice. What is job related can be argued (and has been). An employer creates some risk when they disclose why a person was released. Read http://www.esrcheck.com/ESRPublications/Reference_Checking.html for a discussion on the California law.

Answer 7

Interesting. I wouldn't think that its illegal. But there are a ton of crazy laws out. To play it safe I wouldn't give reasons for termination in a letter of recommendation even though its something as simple as she couldn't guarantee working there for a few years.

Answer 8

Yes it is illegal to state why they were fired. The only information that is supposed to go in the letter is start/end dates of employment, good things they did, whether or not they would be hired back.

Answer 9

It's true! It keeps people from slandering and getting sued for slandering. You also cannot reveal how much ther person was making in their postion with your company. Even if you say that she was competent, the next employer may think that she will leave unexpectantly and look over her application. Laws aren't always meant for every case, but if they apply to one they apply to all.