What Is Blacklisting in Employment? Definition, Examples & Guide

What Is Employment Blacklisting?

Employment blacklisting is the practice of creating and sharing lists of workers who should not be hired, either within a single organization or among multiple employers in an industry. Blacklisting typically occurs as retaliation for protected activities, union involvement, whistleblowing, or prior employment disputes.

Unlike internal do-not-rehire policies based on documented performance issues, blacklisting involves deliberately interfering with someone’s ability to find work—often by sharing negative information with other employers or coordinating hiring decisions across companies.

Quick Answer

Employment blacklisting is the practice of preventing workers from finding employment by sharing negative information with other employers. It’s illegal in approximately 25 states and can violate federal anti-discrimination and labor laws even where not explicitly banned.

Blacklisting has historical roots in 19th-century labor disputes, when employers coordinated to prevent union organizers from working in entire industries. Modern anti-blacklisting laws developed in response to these practices.

Is Blacklisting Illegal?

Blacklisting is explicitly illegal in approximately 25 states and can violate federal law in all 50 states under certain circumstances:

States with Anti-Blacklisting Laws

States with specific blacklisting prohibitions include California, Colorado, Connecticut, Kansas, Nevada, New Mexico, New York, Oregon, Washington, and others. These laws typically make it unlawful to prevent or attempt to prevent a former employee from obtaining other employment.

Federal Law Implications

Even without state blacklisting statutes, the practice can violate:

• National Labor Relations Act: Retaliating against workers for union activity
• Title VII: Discrimination based on protected characteristics
• Whistleblower protections: Retaliation for reporting illegal activities
• OSHA protections: Retaliation for safety complaints

Civil Liability

Blacklisting can trigger defamation lawsuits if false information is shared, tortious interference claims if it prevents employment contracts, and civil rights violations if it constitutes discrimination or retaliation.

What Is the Difference Between Blacklisting and Do-Not-Rehire Lists?

Blacklisting Characteristics

• Involves coordination among multiple employers
• Intended to prevent employment industry-wide
• Often retaliatory or punitive in nature
• Rarely documented with legitimate business justifications
• May involve sharing subjective opinions or false information

Do-Not-Rehire List Characteristics

• Internal company policy only
• Based on documented performance or conduct issues
• Applied consistently according to written policies
• Limited to stating “not eligible for rehire” without elaboration
• Does not involve actively interfering with other employment opportunities

What Are the Legal Risks of Blacklisting?

Criminal Penalties

In states with anti-blacklisting criminal statutes, violations are typically class B or C misdemeanors punishable by fines of $1,000 to $10,000 and potential jail time of up to one year for willful violations.

Civil Damages

Workers can sue for:

• Lost wages and benefits
• Emotional distress damages
• Punitive damages for willful conduct
• Attorney fees and court costs

Defamation claims can result in substantial verdicts if the employer shared false information that damaged the worker’s reputation and employment prospects.

Regulatory Investigations

Federal agencies like the NLRB, EEOC, and OSHA can investigate blacklisting complaints and impose remedies including reinstatement, back pay, and changes to company policies.

Reputational Damage

News of blacklisting practices can severely damage employer brand, make recruiting difficult, and trigger scrutiny of other employment practices by regulators and media.

What Activities Are Most Likely to Trigger Blacklisting Claims?

Retaliatory Blacklisting

Preventing employment after workers:

• File discrimination or harassment complaints
• Report safety violations or illegal activities
• Participate in union organizing or collective bargaining
• Request reasonable accommodations or medical leave
• Testify in legal proceedings against the employer

These activities are legally protected, and retaliation—including blacklisting—violates federal and state laws.

Informal Industry Networks

Managers in related companies discussing specific former employees by name, sharing negative opinions about workers at industry events, or coordinating hiring decisions can constitute illegal blacklisting even without formal lists.

Social Media and Online Reviews

Posting negative information about former employees on professional networking sites, employer review platforms, or social media can create blacklisting liability, especially if the information is false or retaliatory.

How Do You Create a Compliant Do-Not-Rehire Policy?

Organizations can legitimately document employees who are ineligible for rehire without creating illegal blacklists:

Establish Clear Criteria

Define specific, objective reasons for do-not-rehire status:

• Termination for theft, fraud, or violence
• Job abandonment without notice
• Serious fireable offenses like harassment or safety violations
• Breaches of confidentiality or non-compete agreements

Document Thoroughly

Maintain detailed records of the incidents that led to termination and do-not-rehire status. Documentation should include dates, witnesses, prior warnings, and investigation findings.

Apply Consistently

Use the same standards for all employees. Inconsistent application suggests discriminatory or retaliatory motives.

Limit Access and Disclosure

Restrict do-not-rehire information to HR and hiring managers on a need-to-know basis. Do not share information outside the organization unless required by law.

Train on Reference Protocols

When contacted by other employers, limit responses to confirming dates of employment and stating “not eligible for rehire” without providing reasons or subjective evaluations.

Organizations tracking termination reasons and rehire eligibility often use employee directory systems with restricted-access notes fields to maintain documentation.

What Should You Do If Asked for a Reference?

Stick to Objective Facts

Provide only dates of employment, job title, and final salary if requested. Confirm whether the person is eligible for rehire without providing reasons.

Avoid Subjective Opinions

Do not characterize the employee’s performance with opinions like “lazy” or “difficult.” These subjective statements can trigger defamation claims if they damage the person’s employment prospects.

Get Authorization

Some employers require signed releases before providing any reference information beyond dates and title. This protects against privacy claims.

Document the Request

Keep records of who requested the reference, what information was provided, and when. This documentation can be important if a defamation claim arises.

Consider “Neutral Reference” Policies

Many organizations adopt policies of providing only dates, title, and rehire eligibility for all former employees to minimize legal risk while avoiding appearance of retaliation.

What Are the Alternatives to Blacklisting?

Strong Onboarding and Training

Invest in clear expectations, thorough job orientation, and ongoing training to reduce performance problems that lead to terminations.

Progressive Discipline

Use documented disciplinary infractions processes with warnings and improvement plans before termination. This creates legitimate bases for do-not-rehire decisions if termination becomes necessary.

Thorough Background Screening

Implement compliant pre-employment screening to identify candidates with relevant criminal histories or credential misrepresentations before hiring. Review employment status classification to ensure proper worker treatment from the start.

Exit Interviews

Conduct structured exit interviews to document reasons for voluntary departures and identify any potential concerns about rehire eligibility before they become issues. Document frictional unemployment patterns to improve retention strategies.

Reference Check Best Practices

Ask targeted questions of references about specific job requirements and verify credentials thoroughly during hiring rather than relying on informal industry networks. Understand working off the clock violations and other labor law compliance issues that may have led to termination.

How Do You Respond to Blacklisting Allegations?

Take Claims Seriously

Treat blacklisting allegations as serious legal risks. Consult employment counsel immediately if a current or former employee makes such allegations.

Investigate Thoroughly

Review what information has been shared, with whom, by whom, and for what reason. Determine whether any coordination with other employers has occurred.

Preserve Documentation

Gather and preserve all documentation related to the employee’s performance, disciplinary history, termination, and any subsequent inquiries from other employers.

Review Policies and Practices

Audit reference practices, do-not-rehire policies, and manager communications to identify and correct any practices that could be construed as blacklisting.

Implement Corrective Measures

If inappropriate sharing of information has occurred, immediately stop the practice, discipline those responsible, retrain staff on proper procedures, and consider remedial measures for affected workers.

The Bottom Line

Employment blacklisting—sharing negative information to prevent workers from finding employment—is illegal in approximately 25 states and can violate federal anti-discrimination and labor laws everywhere. The practice creates substantial legal, financial, and reputational risks.

Organizations can protect legitimate interests through properly documented, internal do-not-rehire policies based on objective criteria, while limiting external references to factual information only. Consult employment counsel to ensure your policies comply with applicable laws.

Sources

• National Labor Relations Board – Employee Rights
• U.S. Equal Employment Opportunity Commission – Retaliation
• U.S. Department of Labor – Whistleblower Protection Programs

Further Reading

• Job Abandonment Policy Guide – Document involuntary separations properly
• Fireable Offenses Explained – Legitimate termination reasons
• Disciplinary Infractions – Progressive discipline systems

Frequently Asked Questions

What is blacklisting in employment?

Employment blacklisting is creating and sharing lists of workers who should not be hired, typically as retaliation for protected activities or to prevent employment industry-wide.

Is blacklisting employees illegal?

Yes, blacklisting is explicitly illegal in approximately 25 states and can violate federal laws everywhere when it involves retaliation, discrimination, or interference with legally protected activities.

What is the difference between a blacklist and a do-not-rehire list?

Blacklists involve sharing negative information with other employers to prevent employment industry-wide. Do-not-rehire lists are internal policies documenting employees ineligible for rehire based on legitimate, documented issues.

What are the penalties for blacklisting employees?

Penalties can include civil fines of $1,000–$10,000 per violation, criminal misdemeanor charges in some states, civil damages including back pay and emotional distress, punitive damages, and attorney fees.

Can you tell another employer not to hire someone?

Generally no, unless you’re providing truthful, factual information in response to a legitimate reference request. Proactively contacting other employers to discourage hiring can constitute illegal blacklisting.

What should you say when asked for a reference?

Limit responses to objective facts: dates of employment, job title, and whether the person is eligible for rehire. Avoid subjective opinions that could be construed as defamatory.

How do you prove blacklisting?

Evidence can include communications between employers about not hiring specific workers, patterns of unsuccessful applications after leaving one employer, testimony from managers about coordination, and documentation of retaliatory motives.

Are do-not-rehire lists legal?

Yes, internal do-not-rehire lists are generally legal if based on legitimate, documented performance or conduct issues, applied consistently, and not shared externally or used for discriminatory or retaliatory purposes.