At my present place of employment, we are not permitted to give any kind of employment references, positive nor negative.
I3ANAL, but couldn't that be construed as a policy that could hurt former employees' careers, and thereby open the company up to lawsuits of a different sort?
I'm not sure I'd want to work for a company that I knew would be unwilling to act as a reference during my next job search. It seems like a career-limiting move to work at a place where the employer will be unwilling to even confirm that you worked there. :P
Dick move I agree. But isn't like a company has to help you get a job elsewhere.