Employment verification is the process of verifying current and past employment by obtaining dates of employment as well as amount of income paid. Employment verification may be required when obtaining a new job or applying for credit.
Employment is verified because often applicants do not provide truthful information on applications for a job or loan. Employers verify employment to ensure they are making accurate decisions regarding the applicant.
Information other than employment dates and income may not be provided, based on laws protecting current and previous employees.
The Privacy Act of 1974 prevents employers from giving out personal identifiable information on current and previous employees. It was enacted to protect employees from invasions of their privacy.
The government establishes laws such as the Privacy Act. However, organizations have their own rules regarding how to verify employment to ensure they do not violate government regulations.
Employers often verify employment over the phone to ensure they obtain the information quickly. Employment verification can also be completed by mail, fax or the Internet.