Ok, there is no law that prevents a bad recommendation. Period. You will not go to jail if you give one. Period. If a policeman shows up to arrest you for it, you should see if your birthday is coming up because he's definitely a fake and probably a stripper.
This is basic First Amendment stuff.
Now, you can be SUED for giving a bad recommendation, which is something altogether different. If I give my opinion of someone's work ethic and they don't get a job based on that, then they can sue me for defamation or for not allowing them to practice their trade (a favorite in my industry). Note that I did not say that they would win.
Risk managers have encouraged HR people to simply verify employment for other HR-types. If they want to say something positive, that's fine. Just don't say anything negative. If you have nothing positive to say, just verify dates of employment.
Simple enough.
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"They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." - B. Franklin
"There ought to be limits to freedom." - George W. Bush
"We have met the enemy and he is us." - Pogo
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