Employment Checks Done Right

• HR can only confirm basic employment details unless the applicant has signed an authorization form.
• Focus your verification call on job title, hire date, and whether the applicant is in good standing.
• Avoid asking about salary or performance unless you have explicit permission from the applicant.
• Document every verification call in your tenant records for legal protection and future reference.

Why Employment Verification Matters

Employment verification is a critical step in tenant screening. It helps you confirm that the applicant has stable income to meet their rent obligations and assess their reliability as a tenant. However, many landlords struggle with what they can and cannot ask during these calls.

When you call an employer, you're typically talking to the human resources (HR) department. HR professionals are bound by privacy laws and company policies, which limit the information they can share about an employee. Your goal is to get the most relevant information without overstepping legal or ethical boundaries.

Start by checking your state's laws regarding tenant screening and employment verification. Some states have specific rules about what landlords can ask and how they can use that information. For example, some states prohibit discrimination based on income source or employment status.

What HR Can Confirm Without Authorization

If an applicant hasn't signed a formal authorization form, HR can typically confirm the following details:

• Whether the applicant is currently employed by the company.
• The applicant's job title or position.
• The date they were hired.

These details are usually considered public or non-sensitive information that HR can share without violating privacy laws. However, policies vary by company, so always confirm what the HR representative is willing to share.

Ask open-ended questions to encourage the HR representative to provide as much information as possible within their guidelines. For example, instead of asking "Is John Doe currently employed?", ask "Can you confirm John Doe's employment status and job title?".

The Importance of Authorization Forms

To access more detailed employment information, you need the applicant's written authorization. An authorization form should clearly state that the applicant is permitting their employer to release specific information to you, the landlord. This form protects both the applicant and the employer from potential legal issues.

If you plan to ask about salary, performance, or reasons for termination, make sure the authorization form explicitly covers these topics. Without proper authorization, HR representatives may refuse to answer or provide incomplete information.

How to Ask the Right Questions

When you call an employer for verification, be prepared with a list of questions. Stick to the facts and avoid subjective judgments about the applicant's performance or character.

Example questions:

• "Can you confirm [Applicant's Name] is currently employed with your company?"
• "What is their job title or position?"
• "When was [Applicant's Name] hired?"
• "Is the employee in good standing?"

If you have authorization to ask about salary or performance, use neutral language. For example:

• "Can you confirm the annual salary for this position?"
• "Has the employee received any disciplinary actions in the past year?"

Handling Common HR Responses

HR representatives may respond to your questions in various ways. Be prepared for vague or non-committal answers, as HR professionals are trained to protect the company's interests and comply with privacy laws.

If an HR representative refuses to confirm details or provides minimal information, consider asking for a written statement. Some companies have policies that only allow them to confirm employment via email or fax.

Documenting Verification Calls

Keep detailed records of every employment verification call. This documentation protects you from legal disputes and provides a reference for future tenant screening.

Use a standard form or spreadsheet to record the following details:

• Date and time of the call.
• Name and title of the HR representative you spoke with.
• Information confirmed during the call.
• Any additional notes or observations.

Store these records securely, preferably in a digital document vault like TenantFlow's document management system. This ensures easy access and organization for future reference.

Verifying Self-Employed Applicants

Self-employed applicants require a different approach to employment verification. Since they don't have an HR department, you'll need alternative methods to confirm their income and employment status.

For self-employed applicants, request documents such as tax returns, bank statements, or profit-and-loss statements. These documents provide evidence of stable income and financial responsibility.

For more detail on this process, see our guide to verifying self-employed applicant income.

Screening Gig Workers

Gig workers, such as those employed by ride-sharing or delivery services, present unique challenges in employment verification. These workers often have variable income and may not have traditional employment records.

When screening gig workers, focus on their payment history and income stability. Request documents such as payment receipts or bank statements that show consistent earnings over time.

For more information on screening gig workers, see our guide to screening gig workers: the landlord's guide.

Using Job Offers as Income Proof

Job offers can serve as proof of income for applicants who are starting a new job. A signed offer letter typically includes details such as the start date, job title, and salary. This information can help you assess the applicant's ability to meet their rent obligations.

However, be cautious when relying solely on job offers. Confirm the offer's authenticity by contacting the employer directly and verifying the details provided in the letter.

For more information on using job offers as income proof, see our guide to using job offers as income proof.

Avoiding Common Mistakes

One common mistake landlords make is asking for too much information without proper authorization. HR representatives are trained to protect employee privacy and may refuse to answer intrusive questions.

Another mistake is failing to document verification calls. Without proper records, you may face legal disputes or lose valuable information for future reference.

Finally, be consistent in your screening process. Treat all applicants equally and follow the same procedures for employment verification. This consistency helps protect you from discrimination claims and ensures a fair screening process.

FAQ

What should I do if an HR representative refuses to confirm employment details?

If an HR representative refuses to confirm employment details, politely ask if they can provide a written statement or direct you to someone who can assist. Some companies have strict policies about sharing information over the phone.

How far back should I go when verifying employment history?

Focus on the applicant's most recent employment history, typically within the last 2-3 years. This timeframe provides a good indication of their current job stability and income.

Can I ask about an applicant's salary during a verification call?

Only if you have explicit permission from the applicant. Without authorization, HR representatives are unlikely to disclose salary information due to privacy concerns.

What should I do if an applicant is self-employed or a gig worker?

For self-employed applicants, request documents such as tax returns or bank statements to verify income. For gig workers, focus on payment history and income stability.

How can I ensure my employment verification process is fair and consistent?

Treat all applicants equally and follow the same procedures for employment verification. Document every call and keep detailed records to protect yourself from legal disputes.