Many states have laws protecting employers who give a negative reference of a former employee. However, many employment law attorneys still advise employers against giving a negative reference and instead, encourage giving a neutral reference. These attorneys argue that giving a negative reference does not benefit either party: the employer may continue to pay unemployment benefits and the employee will be upset at the negative review and have nothing but free time to determine if they have legal action against the employer. However, employers must evaluate the circumstances on a case-by-case basis. If the employee was fired due to serious misconduct, the former employer may face liability for failure to disclose the alleged misconduct. Employers should refer to the state law regarding references and/or consult with counsel before providing an honest yet negative reference.