Employment Verification Laws

by Jennifer Allen; Updated September 26, 2017
Employee files must be retained so that employment can be verified as needed.

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.

Reasons

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 Obtained

Information other than employment dates and income may not be provided, based on laws protecting current and previous employees.

Relevant Laws

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.

Policies

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.

Methods

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.

About the Author

Jennifer Allen obtained her Bachelor of Arts in economics and a Bachelor of Arts in political science, and has worked in finance since May 2006. She completed her Master of Arts in human resource management in December 2009. Allen has written a variety of articles that are published on various websites.

Photo Credits

  • Image by Flickr.com, courtesy of Mo Riza
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