Employment verification involves verifying or attesting previous or current employment, whether on an employee or employer’s part.A party may seek employment verification due to various reasons such as evaluating a potential new employee’s qualifications for staffing reasons, verifying income information, and when applying for housing or mortgage plans. The information required varies with the needs of the party requesting the information, but generally, it includes the employee’s title, responsibilities, salary, and dates of employment.
Why Employment Verification is Important
Different entities or individuals may consider verifying employment due to several reasons. Common scenarios may include:
Lenders originating a loan
In most cases, the primary interest of lenders is to determine your ability to pay your loan on time as per your loan agreement. Lenders may require proof of your income to evaluate your creditworthiness before giving you a loan. However, this is illegal in some states.
Work visa holders validating their employment
Generally, work visas usually require visa holders to maintain their employment for the period of their stay in a host country. In some instances, visa holders may be allowed to transfer to a new position while maintaining their visa. In this case, applicants and visa holders must be proactive about their stay’s requirements to avoid deportation or lose employment verification.
Property owners issuing a lease
Property owners, just like lenders of any sort, will want to ensure you are able to cover your lease payments before issuing you a lease. They take into account your other assets, for example, residual income and savings, but the most relevant piece of information is your monthly income. This allows them to know your ongoing financial situation, thus your credibility.
What is Included in the Employment Verification Form?
You may be required to verify specific details on the employment verification form; thus, review each request carefully to confirm what needs to be verified and stick to the facts. However, common items that may need to be verified include:
- Job title or occupation and responsibilities
- Current employer
- Salary/pay ($), bonus, and benefits
- Employment start date, where the necessary reason for leaving
- Status of the job (full-time or part-time)
- Pay period frequency
Impact of Employment Verification
Employment verification is an essential step necessary in most high-stake situations, for instance, when an employee is securing a loan for their new home. Lenders and third parties may also use employment verification forms to gather adequate information about a candidate’s residual earnings to protect their interests. Each employment verification is usually meant for a specific reason; thus, it is very critical for those seeking to prove their work history to understand the information required by the asking party.
Employment Verification Form Templates
Our Free Employment Verification Form Templates are carefully designed to allow employers to customize and accept verification requests with ease quickly. You only need to tailor the form to fit your company’s requirements and embed it on your website or share it with your employees through the mail. Feel free to download our Free Form template to request proof of employment or keep an updated copy for each of your team if you are liable for verifying employment.
Frequently Asked Questions
What happens during employment Verification?
An employer may choose to reveal a former or current employee’s occupation, their employment duration, pay package, job roles and responsibilities, performance, if they were terminated, or they resigned. Generally, there are no federal laws restricting what an employer may or may not disclose at a given time. Nonetheless, state laws may differ; thus, it is advisable that you check with your State Labor Department to be certain what information can be released for employment verification.
Why should I conduct employment history verification?
Surprisingly, some candidates falsify their work history information; therefore, doing a background check helps you prove the information conveyed. Secondly, verification allows you to get a more accurate employment timeline. Lastly, as a manager, you will have a more solid basis for hiring purposes.
How far back do employers check work history?
This varies based on your state. Typically, most employers request the past 7-10 years of an employee’s work history.
Are employers required to give employment Verification?
The United States Equal Employment Opportunity Commission outlines that it is illegal to refuse to give information based on color, race, gender, and other non-job-related factors; however, there are no known official laws requiring employers to verify the employment history of past employees.
Is it necessary for the employee to sign the employment verification request form before my request can be fulfilled?
Yes! It is highly recommended that you control the type of information that you convey about yourself in writing and authenticate it with your signature for privacy laws and potential legal liabilities.
What about Privacy?
Employees are protected by law to keep their private facts confidential as well as a right to some degree of personal space. An employer that discloses private facts or lies about an employee’s employment history may be held liable in a civil action for defamation or invasion of privacy.
Employers need to do proper background screening on potential employees for the first time. If you fail to follow up on the information conveyed to you by an applicant, and they end up causing any damages to your company, you will only have yourself to blame. Make sure to double-check employment history as well as references using employee verification forms or any other given letter templates. Finally, avoid providing anything other than job-related facts if it is your turn to fill out an employment verification letter or employee reference letter to avoid potential civil disputes.