LinkedIn - beware of unofficial references

As social networking rapidly becomes a way of life, companies should be aware of some of the issues surrounding the possible liability that employers may suffer as a result of unofficial references on LinkedIn and other such sites.

More and more people are soliciting their contacts (which may include colleagues and co-workers)for positive comments about themselves, presumably for use in future job searches. In a recent example, a client told us that several senior employees had been asked for, and had subsequently posted, positive references about another employee whilst the terms of his compromise agreement were still being negotiated.

This can have a couple of negative consequences:
1. Even though it may not be perceived to be a formal reference, where an employee provides comments about an ex¬ employee on LinkedIn or on any other medium, this is not treated as just a personal comment by that individual. He or she is effectively giving a reference on behalf of the company. If that reference turns out to be misleading, the company could be subject to a misrepresentation claim.
2. Not a legal point but where the company is trying to conclude a negotiation with an ex employee, it could prejudice the negotiations if employees from the group are posting positive comments on the internet.

HR should be aware of these issues, an take appropriate measures, to protect the company.