“Hi, this is Mike from XYZ Company. I’d like to ask you a few questions about a former employee whom you used to manage.” At some point in managers’ careers, they’ll receive such a phone call from an ex-employee’s prospective employer. Be careful: One simple mistake in your response could trigger an expensive lawsuit. Remember: Never disclose medical information about former employees.

If you can’t explain how you select candidates or why you hired one applicant instead of another, get ready for court! However, there’s a simple, two-step way to keep from being sued: 1. Create a hiring process that makes sense. 2. Follow it rigorously.

The unemployment rate has been hovering between 9% and 10% for more than a year. Some of those unemployed people probably once worked for you—and they would probably love to list you as a reference. That means it’s time to make sure you have policies on how to handle reference-check calls.

As part of the hiring process, supervisors are sometimes called on to check an applicant’s references. Those phone calls can help you accurately assess a person’s strengths, weaknesses and past job performance. But checking references can also be challenging—and legally tricky. Here are six guidelines for soliciting information without bumping into legal issues:

Employers typically don’t want to hire applicants who haven’t succeeded elsewhere. So they sometimes create a blanket “no-hire” rule for applicants who aren’t eligible for rehire by their former employers. Such a policy can give you cover against possible retaliation complaints. But if you’re tempted to draft such a policy, be careful: Make sure you enforce the rule uniformly.