While I was researching something else, I stumbled upon Indiana’s Anti-Blacklisting Statute, Indiana Code 22-6-3-2 which states as follows:

§ 22-5-3-2. Railroads; damages; exemplary damages If any railway company or any other company, partnership, limited liability company, or corporation in this state shall authorize, allow or permit any of its or their agents to black-list any discharged employees, or attempt by words or writing, or any other means whatever, to prevent such discharged employee, or any employee who may have voluntarily left said company’s service, from obtaining employment with any other person, or company, said company shall be liable to such employee in such sum as will fully compensate him, to which may be added exemplary damages.

The text of this statute suggests that, except in employment by sole owners, an employer may not attempt to prevent a former employee from gaining employment with any other employer.  Statutes like this are no doubt behind the practices of some firms asked for references to only provide dates of employment to those seeking references.  This statute provides for compensatory damages and “exemplary damages” – essentially another term for punitive damages.

Note that Section 1 of the same law provides immunity to employers who provide factual information including but not limited to the reason for the discharge unless the employer knows the information was false.  That section also gives the employee the right to receive a copy of any information provided to the enquiring potential employer.

(c)

Upon written request by the prospective employee, the prospective employer will provide copies of any written communications from current or former employers that may affect the employee’s possibility of employment with the prospective employer. The request must be received by the prospective employer not later than thirty (30) days after the application for employment is made to the prospective employer.

I see nothing in this section that prevents an employee from requesting the information provided to prospective employers BEFORE the prospective employer makes the inquiry.

THE BOTTOM LINE is that if you are fired or quit a job, I suggest that you send your employer a letter demanding that you receive copies of correspodence that the company sends to prospective employers.  If you cite the anti-blacklisting statute, that might discourage the employer from badmouthing you or discouraging prospective employers from hiring you.

If you think you are being blacklisted, you can consider hiring an attorney. It is likely that you will have to pay out of pocket for this representation though, because it is unlikely that the attorney will be able to get a fee from the blacklisting employer even if a court action is brought successfully.