SENATE BILL NO. 1
INTRODUCED BY D. GRIMES
A BILL FOR AN ACT ENTITLED: "AN ACT GENERALLY REVISING THE LAWS RELATING TO EMPLOYMENT REFERENCES, BLACKLISTING, AND DEFAMATION; CLARIFYING THAT CONSENT TO PUBLICATION CONSTITUTES A PRIVILEGE UNDER DEFAMATION LAW; PROVIDING THAT EMPLOYMENT REFERENCES ARE SUBJECT TO DEFAMATION LAW; DEFINING "BLACKLISTING" AND DISTINGUISHING EMPLOYMENT REFERENCES AND BLACKLISTING; REPEALING LIMITS ON LIABILITY FOR EMPLOYMENT REFERENCES; AMENDING SECTIONS 27-1-804, 39-2-801, AND 39-2-803, MCA; REPEALING SECTIONS 27-1-737, 39-2-802, AND 39-2-804, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND AN APPLICABILITY DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 27-1-804, MCA, is amended to read:
"27-1-804. What communications are privileged -- applicability to employment references. (1) A privileged publication is one that is made:
(1)(a) in the proper discharge of an official duty;
(2)(b) in any legislative or judicial proceeding or in any other official proceeding authorized by law;
(c) with the consent of the defamed person, unless the consent is obtained by fraud or duress or is given by one who lacks the capacity to consent;
(3)(d) in a communication without malice to a person interested therein by one who is also interested or by one who
stands in such relation to the person interested as to afford a reasonable ground for supposing the motive for the
communication innocent or who is requested by the person interested to give the information between persons each having
an interest or duty with respect to the subject matter of the communication and that is made with the purpose to further the
interest or duty;
(4)(e) by a fair and true report without malice of a judicial, legislative, or other public official proceeding or of anything
said in the course thereof of the official proceeding.
(2) The provisions of this section apply to employment references."
Section 2. Section 39-2-801, MCA, is amended to read:
"39-2-801. Employee to be furnished on demand with reason for discharge. (1) It is the duty of any A person after
having discharged any who discharges an employee from service shall, upon written demand by the discharged employee
made within 30 days of the discharge, to furnish the discharged employee in writing with a written statement of reasons for
the discharge within 30 days of receipt of the written demand. Except as provided in subsection (3), if the person refuses to
do so within a reasonable time after the demand, it is unlawful for the person to furnish any statement of the reasons for the
discharge to any person or in any way to blacklist or to prevent the discharged person from procuring employment
elsewhere, subject to the penalties and damages prescribed in this part.
(2) A written demand under this part subsection (1) must advise the person who discharged the employee of the
possibility that the statements statement may be used in litigation.
(3) A response to the demand may be modified at any time and may not limit a person's ability to present a full defense in any action brought by the discharged employee. Failure to provide a response as required under subsection (1) may not limit a person's ability to present a full defense in any action brought by the discharged employee."
Section 3. Section 39-2-803, MCA, is amended to read:
"39-2-803. Blacklisting prohibited -- definition -- penalties. (1) If any company or corporation in this state A person
who blacklists or authorizes or allows any of its agents to blacklist or any person does blacklist any discharged the
blacklisting of a former employee or attempts by word or writing or any other means whatever to prevent any discharged
employee or any employee who may have voluntarily left the company's service from obtaining employment with another
person, except as provided for in 39-2-802, such company or corporation or person is liable in commits the offense of
blacklisting and upon conviction shall be fined not to exceed $500, or be imprisoned in the county jail for a term not to
exceed 6 months, or both. In any civil action arising out of the blacklisting, a judge or jury may award punitive damages to
such employee so prevented from obtaining employment, to be recovered by him in a civil action, and is also punishable as
provided in 39-2-804 27-1-220.
(2) For purposes of this section:
(a) "blacklist" or "blacklisting" means to prepare THE COMMUNICATION BY AN EMPLOYER OR FORMER
EMPLOYER TO A PROSPECTIVE EMPLOYER OF a list, written or oral, of persons identified for special avoidance,
antagonism, or enmity on the part of those who prepare the list or those among whom it is intended to circulate THE
EMPLOYER, FORMER EMPLOYER, OR PROSPECTIVE EMPLOYER; and
(b) individual employment references THE FOLLOWING do not constitute blacklisting:
(I) INDIVIDUAL EMPLOYMENT REFERENCES; OR
(II) TRUTHFUL STATEMENTS CONCERNING JOB PERFORMANCE OR THE ABILITY OR THE LACK OF ABILITY TO PERFORM A JOB."
NEW SECTION. Section 4. Repealer. Sections 27-1-737, 39-2-802, and 39-2-804, MCA, are repealed.
NEW SECTION. Section 5. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].
NEW SECTION. Section 6. Effective date. [This act] is effective on passage and approval.
NEW SECTION. Section 7. Applicability. [This act] applies to causes of action arising on or after [the effective date of this act].
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