How should reference searches be documented?

In case of an eventual lawsuit, or even just to protect your organization in case an employee proves unsatisfactory, document every step of the reference check in order to show that you acted reasonably in hiring the applicant based on the information that you had.

Document the following during performance of a reference check in order to avoid unfortunate situations:

• a list of all references checked

• the name of the person(s) from the organization who actually contacted the references

• how the references were contacted, namely, by telephone or by letter

• notes on all telephone conversations made

• name and job title of every person spoken with

• a copy of the return letter

• copies of actual records received, i.e., credit bureau checks, driving records, etc.

• the fact that every reasonable effort to contact a listed reference was made but that the effort was unsuccessful

• the fact a given reference was contacted but supplied insufficient information.

Keep the records, once you have gone to the trouble of creating documentation, as indicated below:

• So long as the employee works for your organization, include the reference checks as part of the hiring papers and keep these records in the employee's personnel file.

• Treat an ex-employee's reference records and reports as merely part of that ex-employee's personnel file. No one has time to go back and weed out the file. A common rule of thumb is to keep an ex-employee's personnel file for seven years.

• Do not throw out records of reference checks on unsuccessful applicants. They are considered part of the employment records having to do with hiring that the Equal Employment Opportunity Commission requires you to keep for at least one year after the date of the employment decision.

• Once a discrimination charge has been brought, or any court action for that matter, keep the records until the matter has been resolved.

Remove any confidential records from the file. If the reference records include credit reports or criminal record reports or other papers that would be covered by the Fair Credit Reporting Act's confidentiality requirements, they may be put in a separate file with the employee's medical records (which also must remain confidential). This would prevent supervisors from seeing the information when reviewing a personnel file.

If you take reference reports out of the personnel file, leave a note in the file indicating where they are.