The problem is that while prospective employers can't ask your companies HR dept. to verify anything beyond the most basic facts of your tenure, they can make n

The problem is that while prospective employers can't ask your companies HR dept. to verify anything beyond the most basic facts of your tenure, they can make note of whether your direct manager is included in your list of references. The fear (perhaps unjustified) is that any signal indicating a less-than-amicible seperation will be treated as a red flag by potential employers, who would prefer to give the position to someone who is either recruited for that spot in particular, or is trading up cleanly. This is less of an issue for people with a specific and clearly demonstrable skill set that's in high demand, but to the extent that finding a new position demands some growth on your part (i.e. an employer willing to place some faith in having you develop on their dime) this can add to the potentially crippling sense of self-doubt and insecurity that a situation like the OP described will engender. There's a school of thought that says your optimal career moves should be based on you getting yourself into places you want to be, not running from places you don't want to be. If you know this, and you're in a situation like this, you already feel you're having to make the most of a bad hand, and that where ever you go next may end up being a severe compromise you have to live with for some time.