Question 1

Am I legally required to tell a prospective employer why someone was fired?

Gordon Marzano · Accepted Answer

For most private employers, no — New Jersey law doesn't require you to give a reference at all, or to explain why an employee was terminated. There are important exceptions in regulated fields: health care entities must share certain information under the "Cullen Act," and broker-dealers must report the reason a registered representative left on Form U5. If you operate in one of those industries, staying silent can actually be the riskier choice.

Question 2

Can I give a negative reference for a former employee in New Jersey?

Gordon Marzano · Accepted Answer

Yes. New Jersey employers have a qualified privilege to share honest, factual information with a prospective employer who asks — and that includes unfavorable information. Because truth is a complete defense to a defamation claim, the key is to stick to what your records document rather than opinions or exaggeration. A former employee generally can't win a lawsuit unless they prove you shared information you knew was false or acted with reckless disregard for the truth.

Question 3

How can my business give useful references while limiting legal risk?

Gordon Marzano · Accepted Answer

Put a simple, consistent reference policy in place. Route every request to one trained point of contact (usually HR), share only information your documentation supports, and answer the specific question asked rather than volunteering extra commentary. Asking departing employees to sign a release that authorizes reference disclosures — and treating every employee the same way — further reduces your exposure.

Question 4

How often should we conduct an HR audit?

Gordon Marzano · Accepted Answer

As a general rule, an annual review works well for most businesses, with additional check-ins whenever the law changes or your company grows, restructures, or enters a new state. That said, the right cadence and depth vary from one employer to the next, which is exactly the kind of thing we help New Jersey businesses figure out. To talk through what makes sense for your organization, call Marzano Human Resources Consulting at 973-513-9916.

Question 5

What is an HR audit, and does my business need one?

Gordon Marzano · Accepted Answer

An HR audit is a structured review of your policies, pay practices, records, and day-to-day procedures to confirm they still line up with current law. Nearly every employer can benefit from one, but the right scope depends on your size, industry, and how your workforce is structured. If you haven't reviewed your handbook or classifications since before 2025, that's usually a strong sign it's time to take a closer look.

Question 6

Why is an HR audit especially important for New Jersey employers right now?

Gordon Marzano · Accepted Answer

Both New Jersey and federal employment law shifted significantly in 2025–2026 — from new pay-transparency and separation-reporting rules to changes in how discrimination claims and independent-contractor status are treated. As a result, policies that were compliant a year ago may already be outdated. An audit is the most efficient way to catch those gaps before they surface through a complaint or an agency inquiry.

Reference Checks in New Jersey: What Your Business Can (and Can’t) Say

Is It Time for an HR Audit? What New Jersey Employers Should Review Now

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