Is an employer legally required to confirm employment to a Collection Agency?
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Is an employer legally required to confirm employment to a Collection Agency?
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Sadly, payroll employees are not entitled to Wall Street bailouts for their current financial troubles. In the last two months, seven of my thirty employees have had wage garnishments issued or have pending garnishments for such nonsense as unpaid medical bills (even though we pay 100% coverage) returned lease items like cars; etc. None are tax or child support related. The attorneys for these collection agencies are calling my business non-stop. Am I required to confirm employment of current or former employees to these folks? Some have gotten the garnishment issue signed by a judge, some have not. Help? BTW - I do not want to waste time with these people as I have my own business to save.
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hr4me
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If you get a court approved garnishment then you do not have a choice but to comply with the terms of that garnishment. As far as phone calls to verify employment, handle them the same way you would handle all calls for this. Have them send you a signed authorization release for the person they are asking about to release information about their employment and you will be happy to answer their questions. If your company policy is to only accept these inquiries via fax or by mail then hold that policy in the same way. Tell them only by fax or mail and you will respond the same way, by fax or by mail.
Collection agencies harass employers because they want you to go to your employees and ask them to contact the vendors and to stop calling your business. Our company tells the vendors what the policy is for employment verification, if they continue to call after you tell them that then you just let them know you are going to report their company for illegal collection activities. |
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cookiesmom
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if you have any court orders on these then yes you have to report their information......also the collection agencies and attorneys cannot call you for this reason ~ it is illegal....further you stated that some do not have court orders.....on those cases where you dont have one then legally you cannot hold money from your employees wages |
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leysarob
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If you get a court-ordered request, you must comply. But to the others you owe nothing. You don't have to respond. |
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Becky D
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Yes you have to give them the correct information, these people owe other people money. You should get a secretary that can help take in the calls. |
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