Employment history verification is a practice in professional settings, serving to confirm an individual’s career claims and credentials. The process supports decision-making in various contexts, from hiring new employees to approving financial applications like mortgages or loans. Establishing an accurate record of past employment helps mitigate risk and ensures that decisions are based on truthful, documented work experience. Understanding the methods and rules governing the release of this private data is important for both employers and individuals.
Defining the Scope of Employment Verification
Employment verification confirms the details an individual provides about their work history, focusing on objective data points. The information sought generally includes employment dates, specific job titles, and sometimes the final salary or reason for separation. Most former employers provide only this basic information to external requestors. This restriction limits the company’s liability against potential defamation or discrimination claims. Consequently, many companies only confirm what is documented in their internal records, avoiding subjective commentary on performance or character.
Legal Frameworks Governing Employment History Checks
Compliance with federal law is required when a third party conducts an employment history check. The Fair Credit Reporting Act (FCRA) governs the use of consumer reporting agencies (CRAs) that perform employment background screening. Before any check is initiated, the FCRA mandates that the employer must provide the applicant with a clear, written disclosure and obtain explicit authorization to procure a consumer report. This disclosure must be a standalone document, separate from the employment application itself.
The FCRA also outlines a strict, two-step process for adverse action based on the report’s findings. If an employer considers denying employment or taking negative action, they must first issue a pre-adverse action notice. This notice requires providing the applicant with a copy of the report and a summary of their rights under the FCRA. The applicant must then be allowed a reasonable time, generally considered at least five business days, to review the information and dispute any inaccuracies with the CRA. A final adverse action notice is only permitted after this waiting period and dispute resolution process is complete.
How Individuals Check Their Own Employment Records
Individuals can verify their own employment history to ensure the accuracy of their professional records before applying for a new position. One direct approach involves contacting the Human Resources or Payroll departments of former employers to request a copy of their personnel file. This confirms start and end dates, job titles, and compensation data relevant for future applications.
For earnings verification, individuals can request transcripts directly from the Internal Revenue Service (IRS) using Form 4506-T. This form obtains a Wage and Income Transcript, detailing information reported to the IRS by all employers, including W-2 and 1099 forms, for specified tax years. This transcript serves as an official, third-party record of employment and income, useful for resolving discrepancies. Individuals can also request a complete earnings history report from the Social Security Administration, which lists all employers who have reported wages over their career.
Primary Methods for Verifying Another Person’s History
Direct Contact with Former Employers
Verifying a candidate’s history involves directly contacting the Human Resources department of a former employer. A verifier typically calls the main company line or uses a dedicated verification number provided by the applicant. The scope of information released is limited to the individual’s dates of employment and their job title, complying with internal company policies. Many former employers refuse to comment on performance, salary, or eligibility for rehire, citing a desire to avoid potential litigation.
Utilizing Third-Party Employment Verification Services
Many employers subscribe to third-party databases that centralize the verification process. The Work Number, operated by Equifax Workforce Solutions, is the largest database, containing employment and income data for millions of workers. A verifier, such as a prospective employer or a lender, must register and be credentialed to access this data with a permissible purpose under the FCRA. Once credentialed, the verifier uses a specific employer code and the individual’s Social Security Number to instantly access a report detailing employment dates and job history. This system handles verification requests constantly, easing the burden on former employers’ HR departments.
The Role of Professional Background Screening Companies
Professional background screening companies, legally defined as Consumer Reporting Agencies (CRAs), specialize in conducting comprehensive, multi-source verification. These agencies utilize proprietary databases, access public records, and often integrate with third-party verification services like The Work Number. Employers hire CRAs to perform a holistic check that may include criminal history, driving records, and educational credentials alongside employment history.
Using a CRA triggers compliance obligations under the FCRA for the hiring company. The employer must certify to the CRA that they have provided the required disclosure and obtained consent from the applicant. The CRA’s report is an official consumer report, and any negative hiring decision based on its contents must follow the two-step adverse action procedure outlined in the FCRA. These companies streamline the process for employers while ensuring the data collected is accurate and handled fairly.
Addressing Discrepancies and Missing Information
Verifiers occasionally encounter discrepancies, such as mismatched employment dates, or missing information when a former company has closed or been acquired. If a candidate’s resume dates do not align with the verified history, the verifier should request supplementary documentation from the applicant for clarification. Acceptable evidence includes copies of W-2 forms, pay stubs, offer letters, or termination letters that clearly show the start and end dates.
When a background screening company finds information that conflicts with the applicant’s statements, the individual has the right to dispute the findings. The applicant must notify the CRA of the perceived inaccuracy, and the CRA is then legally obligated to conduct a reinvestigation, typically within 30 days. If a former employer is unreachable or the records are incomplete, the verifier may rely on alternative official documents, such as the IRS Wage and Income Transcript, to confirm the income and employment data.