ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Wednesday, February 5, 1997 TAG: 9702050116
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: JEFF STURGEON
Employers can no longer hope that state law will make it easier to check references on prospective employees from their former bosses.
The main bill in this area - HB 1674, sponsored by Del. Beverly Sherwood, R-Winchester - has been postponed by a House subcommittee until 1998.
The bill was intended to cut the legal risks and potential legal costs for employers who give job references. The risk of defamation lawsuits, which carry a maximum penalty of $350,000, has made many businesses reluctant to discuss former employees.
The bill would prevent a person who was the subject of a reference from winning damages in court from a past or current employer over a reference, unless the person proved the employer had lied deliberately or intentionally spread misleading information.
The proposal also would give an employer who defeats such a lawsuit the right to have the losing side pay its legal bill.
LENGTH: Short : 28 lines KEYWORDS: GENERAL ASSEMBLY 1997by CNB