There is no law about what a employer can or cannot say. There are only things it is stupid for an employer to say (and stupid is not illegal yet...)
With that...most employer are respectful enough not to contact your current employer without your permission. You do not want to work for one that would.
With that...from my 20+ years in hr...do not...repeat DO NOT quit until you have another job. Employers are leery of people who quit without another job. Lack of income is not the leap of faith you want to make. If I see someone who quit without another job I suspect they were near to being pushed out the door or they were actually fired or they are flaky.
Do not...DO NOT EVER say anything bad about your current employer. If someone is willing to tell me bad things about their current - or any former employer it is a GIANT red flag.
There are ways to be positive about anybody and any job. Practice doing that.
So...don't quit until you have an offer...don't worry about whether or not your current employer will be contact...just very politely say...I am still employed so please do not contact my current employer until you have made me an offer and be postitive!
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