Fresh grass cuttings are fine. Half-rotted ones need to be handled with particular care, as they form a nasty stodgy mass of rooting material which can be lethal; if it's in this condition, try to keep the mulch away from direct contact with stems, unless you're using it on something really tough. I tend to use it on potatoes, round bushes, and on beds where nothing's going to be growing for a while. That being said, I have access to a mountain of rotting grass cuttings, and used carefully, they're invaluable.