What is the previous employer legally allowed to say to another potential employer about the person, if terminated from the previous employer?

Generally speaking when called for an employment reference for a job applicant the previous employer can tell the hiring employer the reason for the termination, so long as the previous employer is (1) not aware that the facts he is providing are untrue; (2) not providing information with "reckless disregard for the truth"; or (3) not motivated in providing the reference by any reason resulting from your race, color, creed, religion, gender, national origin, age, disability, or other factor the consideration of which is prohibited by federal, state or local law.  In many states the previous employer cannot  successfully be sued for providing such a reference because the communication is considered privileged.   Michael Caldwell 404-979-3150