When an Employer Is Asked for a Reference for a Former

question 11

Multiple Choice

When an employer is asked for a reference for a former employee, the employer

• A) has a duty to respond
• B) has no duty to respond, but if he/she responds, the reference must be truthful and honest
• C) can only respond if the former employee has signed a waiver authorizing release of confidential information
• D) should carefully develop a response that will not subject the employer to liability for defamation, even if that means leaving out relevant information about the former employee

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Definitions:

Salary Contribution

The portion of an individual's salary that is allocated towards investment, savings, or retirement plans, often in a structured or mandated manner.

403b Plan

A tax-advantaged retirement savings plan available to employees of educational institutions and certain non-profit organizations.

Salary Reduction

A decrease in the amount of an employee's pay before taxes as agreed upon by the employer and employee, often in exchange for some benefit such as enhanced retirement contributions.

Tax Bracket

Categories that determine the rate at which income is taxed based on income levels.