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Verification of Employment Requests from Lenders:

Employers can expect to receive two types of standardized employment verification from lenders, written verification and verbal verification.

The written verification of employment is done with employers when a current or previous employee applies for a loan. It is done for all employers where the applicant held a job within two years of the loan application. It checks employment dates, status, title, and salary history.

The verbal verification of employment is done with current employers just before the loan is funded to ensure employment status hasn't changed.

Employers are not required by law to respond to these requests, but most choose to.

Some employers require that employees permit to respond to these requests. Generally, employers do not face any legal issues if they respond truthfully and in good faith.

Verification of employment requests from landlords, collection agencies, and others.

Employers may also receive verification of employment requests from landlords and collection agencies. They are free to ignore these.

If you think the employee may want you to respond, as in the case of a landlord verifying employment before deciding to offer a rental, it may be best to seek written permission from the employee first.

Verification of employment request from the government.

Employers may be required to respond to verification requests from government agencies. When this is the case, the agency will often provide information on the law that requires your response. One of the more common requests is for H1B verification.

Final Thoughts:

Ultimately, you need to verify employment properly the first time. If you fail to follow up on the information in a candidate’s application and they end up causing damage to your company, you’ll have yourself to blame.

Always double-check employment history and references by using an employee verification form or other applicable letter templates, and never provide anything other than basic facts when it’s your turn to fill out an employment verification letter or employee reference letter.

How to Find Employees

A complete guide to finding employees.

FAQs:

How do you verify employment?

It is mandatory for employers to obtain permission from candidates before conducting an employment verification that will provide information on the potential employee’s work habits, attitude, and integrity.

Employers are allowed to gather information about job start and end dates, titles held, salary, job duties, the reason for termination, and rehire eligibility.

What is a verification of employment?

Although the terms verification of employment, employment verification letter, and proof of employment are sometimes used interchangeably, verification of employment, or VOE, generally refers to an entity such as a lender or government asking for employment information, versus another employer.

What happens during employment verification?

An employer may typically disclose a current or former employee's job title, the period of employment, salary amount, responsibilities, job performance, and whether they resigned or were terminated. There are no federal laws restricting what an employer can or cannot disclose, however, state laws may differ. Be sure to check with your state labor department to confirm what information can be released for employment verification.

Why should I conduct employment history verification?

First off, a surprising number of applicants lie. Second, you'll get a more accurate employment timeline. Finally, in general, it'll give a more solid basis for hiring decisions.

How far back do employers check work history?

Employers usually request a candidate's work history for the past seven years, although employment background screening can go up to ten years in some states.

How do I verify the contact information of my employees' previous employers?

Rather than rely on information the candidate supplies, get in contact with the company human resources department directly and ask them who you should talk to that can verify the candidate's employment information. This ensures you're talking to the right person.

Are employers required to give employment verification?

There are no official laws that require employers to verify the employment of former employees. However, the U.S. Equal Employment Opportunity Commission stipulates that it's illegal to refuse to provide information based on race, sex, color, and other non-job-related factors.

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