GIVING A REFERENCE ON A FORMER EMPLOYEE
By PREFERRED Therapy Providers
Recommendations for what to tell to potential employers
When an employee leaves your organization, you have to determine what you will say if a potential employer contacts you for a reference. Do you simply provide dates of employment, job title and salary; or do you go into more detail? Being prepared for what to tell potential employers will make the process easier and will help to avoid potential litigation situations. Here are some recommendations for giving references on a former employee:

Establish a Reference Check Policy
Develop a company policy on reference checks. Determine what information you will provide and what information you will refrain from discussing.
Decide if you will accept written reference requests, phone calls or both.
Appoint one person who is in a management capacity with your business (preferably someone with experience or training in Human Resources) to answer all reference requests.

Before enacting your policy, be sure to have it reviewed by your attorney.
This resource provides a sample company employment verification policy that you can use as a guide.

Employee Signed Authorization
Before an employee leaves, you should require a signed release granting you permission to give reference information to potential employers. This agreement will help to protect you from lawsuits.

If you did not require a signed authorization form before your employee left your employment, require any potential employer who asks for a reference to provide a copy of a signed authorization form from the former employee before providing any information.

Tell the Truth
When giving references on a former employee, tell the truth. Keep your answers brief, do not embellish any of the facts, and do not answer any questions that you do not feel comfortable addressing.
Leave any personal opinions about the employee out of the discussion. Avoid any comments that could be perceived as spiteful or discriminatory.

Check the Laws
Although there are no federal laws that restrict what can and cannot be disclosed in a reference check, most states do have laws. Be sure to check with your state labor department for labor laws pertaining to what employers can and cannot disclose about a former employee.

When in Doubt, Seek Legal Advice
If you’re unsure, seek legal advice before giving references on a former employee, especially if the employee left on less than favorable circumstances. This could include an employee who exhibited violent behavior in the workplace, or an employee who was using company computers to view inappropriate or pornographic content, or an employee who committed a crime.
5 MYTHS ABOUT EXTENSIONS FOR BUSINESS INCOME TAX RETURNS
By Barbara Weltman, Small Business Trends
Businesses must file annual federal income tax returns by a set due date. For partnerships and S corporations on a calendar year, the deadline is March 15 (e.g., March 15, 2021, for the 2020 return); for calendar-year C corporations and sole proprietors, the deadline is April 15 (e.g., April 15, 2021, for the 2020 return). Businesses that can’t meet the deadline may obtain a filing extension. There’s much confusion about the rules impacting filing extensions.

Here are 5 myths…and the realities of filing extensions.
LESSONS FROM TOTO
By Wally Bock, Three Star Leadership
A Leadership Tip for Supervisors

Sometimes, when we’re out walking, Toto and I encounter other people and their dogs. When that happens, I usually stand off to the side and tighten my grip on Toto’s leash. Toto is a rescue. That means that I can’t accurately predict her behavior in many situations. I can’t tell if this time she’s going to be aggressive with another dog or not. She sees, senses, and remembers things I don’t.

“Rescue” means her life before we got her wasn’t so great. We know she was eating out of dumpsters and developed an enduring taste for pizza crusts. There’s a lot we don’t know.

Toto reacts to situations, in part, based on her experience before we got her. The people you work with are like that, too. Think of it as “the ghost of bosses past.”

Even if you don’t understand it, other people do things for their reasons. Sometimes, you can figure out those reasons and help them change behavior. Most times, you can’t.

What makes this tricky is that often, people can’t explain their behavior themselves. Sometimes, the reason they’re wary or they don’t trust you or their teammates is so far below the surface that it’s unavailable for discussion.
PREFERRED Therapy Providers is one of the largest therapist-focused networks in the US. We manage contracts for health insurance companies, HMOs, ACOs, PPOs, self-insured employers, third-party administrators, workers’ compensation carriers, auto insurance carriers, and specialty networks locally, regionally, and nationally. As a network provider, you can simplify your administrative burden and strengthen your contract portfolio. 

Contact us to learn more about how you can join the PREFERRED Therapy Providers network.