Employment Verification

Maggie A

When we receive a fax requesting verification of employment, to whom are we obligated to respond? Do we have to reply to creditors tying to find our employees so they can garnish their wages? I understand we need to respond to governmental agencies, but what about loan companies?
Thanks,

Don D

You are actually 'obligated' to respond to none of them. Responding to loan companies when your employee has applied for a loan, is a courtesy to your employee. You have no obligation to respond to anything else, literally. Unless you have a subpoena handed to you, you do not have a legal obligation. However, there are tons of opinions about what you ought not to and ought to respond to.

Maggie A

Thanks, Don. So how do you typically respond to a request like this? Mind you, it is not an employee who is applying for a loan, he obviously did that a long time ago and defaulted. I've tried to ignore these faxes and phones calls, but they have become rather irritating. I have asked the employee to contact the creditor and make arrangements, but I continue to receive these faxes.
Maggie

Whatever

With the exception of subpoenas and court orders, our policy is never to give out information without the written authorization of the person involved and, then, only respond in writing.

POPEYE

Ditto to Whatever. Only written response to written requests with current or former employee's written authorization to release.

Don D

And, a governmental agency is no different than any other. As I have said before, even if the FBI shows up with their badge and black suit and clipboard, you are under no obligation to provide employee information without a subpoena. If creditors are hassling you, send them a brief form letter telling them what your policy is and requesting that they cease and desist with the inquiries.

pork1

Ditto with Don; I have also found that releasing information only when there is a signed signature of the employee, which allows for the release of employment information keeps the flow of request for information to a minimum. This way loan information is handled promply. Others must wait until, we get the signed statement of authorization to release.

PORK

Shadowfax

You may have a state version (Mi does) of a federal act limiting the employer contacts of a creditor or collection agency. I think the Fed law only regulates 3rd party creditor collectors, but Mi law regulates all contacts of a creditor with a debtor employer.

Elle

I request something in writing from the ee if they would like me to verify employment or anything else for a loan that they have inquired/applied for. But for creditors, I would check my state law on wage garnish and still ask the ee for something in writing. This can't continue to take up too much of your time.

stilldazed

Our practice is closer to what Don describes. Our response to the inquirer is that we release nothing except hire date, term date (if terminated), and job title without an employee's signed authorization describing what we can release and to whom we can release it. (The exception is court orders/subpoenas.) We also make no effort to obtain the signed authorization. The inquirer has to do that part, and the request for information must be in writing (fax is acceptable), not by phone.

Even in the case of legal orders, the window of time for response is typically 10 days. We routinely take a fraction of time on the first day to validate the order before making a response.

Be firm. It will save you time and help minimize your risk.