I heard that former employers are not allowed to tell prospective employers that you were fired. However, are they allowed to tell them that you are not eligible for rehire?

I was terminated from a prestigious bank in Delaware after 20 years due to a
random background check which produced a felony conviction I gave an officer a
fake name, i have no other charges. Upon termination, HR stated that under
FDIC regulations, I am not eligible to work for a financial institution because
the conviction was less than 5 yrs old. HR also stated that my termination has
nothing to do with my work, I have no write-ups and was an excellent employee.
I would be eligible for rehire if I acquired a waiver from the FDIC. I applied
for the waiver from the FDIC, and it was approved, however when I tried to
reapply at the company through a temporary agency, they were told that I am not
eligible for rehire.

I found this to be strange and called HR 3 times and verified that I am indeed
eligible for rehire. I have applied for several positions with the company
directly and as a temp, with no luck. I have also applied for banking jobs at
several banks and other temp agencies with no luck. Based on this, I feel that
I am blocked from returning to that company, and I think they are giving bad
info about me. So my question is I heard that former employers are not allowed
to tell prospective employers that you were fired. However, are they allowed to
tell them that you are ‘not eligible’ for rehire?

Asked on June 23, 2016 under Employment Labor Law, Delaware


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, a former employer is allowed to tell anyone, including a prospective employer, that you are not eligible for rehire and/or why you are not eligible and/or why your employment terminated, unless (and only when)
1) There is a written agreement keeping this information confidential; or
2) The information they are giving out is factually inaccurate, since factually inaccurate information could give you a claim for defamation.
Otherwise, though, they may share this information.

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