Putting a Halt to Negative Remarks by Ex-Employer

Q: I recently completed a one-year assignment as a contractor with a large company. I left under what I believed to be favorable circumstances.

I recently became aware that the project manager at the company has been giving extremely negative information about me to prospective clients. I did not list this person as a reference, but prospective employers and headhunters call her when I list the project on my resume. One of my associates, posing as a headhunter, called and was given a very bad recommendation on me.

Do I have any recourse? It is difficult to refuse disclosing where I worked, and if I do, I am effectively unemployable. I have been out of work for several months, largely, I believe, because of the negative information supplied by this former manager.

--B.M., Redondo Beach

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A: It is illegal for a company to give false information on a former employee to a prospective employer. In fact, an employer who does so could face a criminal violation and triple damages.

Employers can make truthful statements about the ex-employee, but the interpretation of whether these statements are true or false can be very subjective.

Since many employers could face a protracted and expensive lawsuit if they give out negative information, many employers provide only the name, job title and dates of employment.

If you are concerned about the information being given by your former employer, consider writing a letter to the company or the person giving the bad reference, advise them of their potential liability to you and request that they limit their remarks about you in the future.

You could also tell them that you will monitor their references in the future with other prospective employers or friends. Since they will not be able to determine who is a prospective employer or an informant for you, the warning could be enough for them to change their practices.

Have someone call them later to see whether they have really changed. If they haven’t, see a lawyer. Keep in mind that you still would have to prove that what they said about you was not truthful.

--Don D. Sessions

Employee rights attorney

Mission Viejo

Company May Reassign You at Will

Q: I left Company X to work at Company Y, both of which have the same owners. When the person who took over my old position is out sick, our controller asks me to drive to Company X and complete the daily work I used to do.

Is it legal for them to ask me to do work at a company I left?

--D.P., Los Angeles

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A: Yes, provided you are paid for the time you spend working at the other company.

An employer has the right to direct the work of its employees, which includes asking them to work at other sites. Although it would be in the two companies’ best interests to provide you with a separate paycheck on the payroll of Company X for your time spent there, you have no legal right to complain so long as you are paid for your work.

--James J. McDonald Jr.

Attorney, Fisher & Phillips

Labor law instructor, UC Irvine

Does Wrongful Termination Apply?

Q: My position was recently eliminated during the latest wave of reorganization within my company. Exactly one month later, I learned that the company had hired a new employee with a similar job and comparable responsibilities.

It was my understanding that once a position was eliminated due to reorganization, the position could not be refilled for at least 12 months. Is that correct? If so, what labor regulations would cover this issue? Do I have possible grounds for wrongful termination?

--K.R., Los Angeles

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A: There is no law or regulation requiring that a position, once eliminated, must not be filled for a specific amount of time.

To bring a wrongful-termination action, you would have to show that your termination violated a public policy of the state--essentially, some law.

For example, if you could establish that your position was not really eliminated but rather that you were terminated because of some discriminatory reason such as being a minority, a woman or being pregnant, your termination would have been improper and you would have a discrimination claim.

--Diane J. Crumpacker

Management law attorney

Fried, Bird & Crumpacker

Getting Around Health Care for All

Q: I have a small business with 14 employees. One of my employees has been working for me for about eight years. The others come and go frequently, generally working no more than two years. I want to give health benefits to the employee who has been here eight years. Can I provide health-care benefits for only one employee?

--B.C., Lomita

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A: Perhaps the simplest arrangement would be for you to reimburse the employee the amount he pays to purchase his own health insurance policy. The employee would not be taxed on the amount of the reimbursements he receives from you.

This type of arrangement is permissible even though it does not cover all of the company’s employees.

--Kirk F. Maldonado

Employee benefits attorney

Riordan & McKinzie

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If you have a question about an on-the-job situation, please mail it to Shop Talk, Business Section, Los Angeles Times, P.O. Box 2008, Costa Mesa, CA 92626; dictate it to (714) 966-7873; or e-mail it to shoptalk@latimes.com. Include your initials and hometown. The Shop Talk column is designed to answer questions of general interest. It should not be construed as legal advice.