Most people think slander only happens in gossip circles or on talk radio. But one of the most common and damaging forms of slander occurs in a setting you would expect to be safe: a job reference call. When a former employer picks up the phone to speak with a prospective employer, every word they say is a potential lawsuit. And if those words are false, harmful, and spoken with reckless disregard for the truth, the speaker can be held legally liable for slander.
Slander is a subset of defamation. Defamation covers any false statement that harms someone’s reputation. The difference between libel and slander is simple: libel is written or permanently recorded, while slander is spoken and temporary. A job reference call is spoken. It’s over the phone, not recorded on paper. That makes it slander by default. But the legal standards are the same: the statement must be false, it must be communicated to a third person (the prospective employer), and it must cause measurable harm to the person being talked about.
The most common slander scenario in reference checks involves a former employer making false claims about an employee’s performance, character, or integrity. For example, saying “We fired her for stealing” when the real reason was a restructuring. Or saying “He was always late and incompetent” when his performance reviews were solid. Those statements are not opinions. They are statements of fact. And if they are false, they are slander.
But here is the tricky part: employers in most states have what is called qualified privilege. That legal term means that as long as the employer is giving a reference in good faith, without malice, and only sharing truthful information relevant to the job, they cannot be sued for slander. The law wants people to be able to share honest feedback without fear of lawsuits. So if an employer says “John struggled with meeting deadlines, but he was a hard worker,” and that is true, there is no slander. Even if the statement hurts John’s chances, truth is an absolute defense to slander.
The problem starts when the employer steps outside the bounds of truth and good faith. If the statement is false and the employer knew it was false, or acted with reckless disregard for whether it was true, the qualified privilege disappears. That is called actual malice. In legal terms, actual malice does not mean hatred. It means the person either knew the statement was a lie or did not care enough to check. In a job reference call, the employer is expected to have accurate records. If they say “She was terminated for fraud” but the personnel file shows no such finding, that is reckless.
Proving slander in a reference call is hard for one practical reason: the call is usually not recorded. In many states, it is illegal to record a phone call without both parties’ consent. That means the only evidence is the word of the former employee against the word of the former employer and the prospective employer. Plaintiffs in slander cases often lose because they cannot prove exactly what was said. But when there is a paper trail—for example, an email from the prospective employer summarizing the call, or a written reference request that contradicts the spoken words—the case gets stronger.
The damages in a slander case can be real and large. If a false reference call costs someone a job offer, and that person had a high salary or career track, the lost wages add up. Courts can award money for emotional distress, lost earning capacity, and even punitive damages if the employer acted with malice. In some states, slander per se applies to certain statements that are so inherently harmful that you do not need to prove specific financial loss. Accusing someone of a crime (like theft), claiming they have a loathsome disease, or attacking their professional competence can all be slander per se. If an employer says “He was fired for embezzlement,” that is slander per se. The plaintiff does not have to prove they lost a job. The statement itself is considered damaging.
What can you do if you suspect a former employer is slandering you in reference calls? First, ask a friend to call that employer pretending to be a recruiter and record the conversation if your state allows one-party consent. If not, document every suspicious job rejection. Request a written reference letter to compare with what was said. If you get proof, contact an attorney who specializes in defamation. Slander cases usually have a short statute of limitations—often one year from the date the statement was spoken—so do not wait.
Employers need to understand that a phone call is not a free pass to say anything. A truthful reference is protected. A false one is a liability. For employees, the takeaway is that your reputation can be destroyed in a two-minute phone call. But the law gives you a weapon if that call was based on lies.
