What Should an Employment Verification Letter Include? HR Experts Explain the Do's and Don'ts.

An employment verification letter should be brief, factual, and legally compliant, confirming only essential details like job title, dates of employment, and current salary. Stick to verifiable facts and avoid subjective opinions or detailed termination reasons to protect both the employee and the organization from potential legal issues.

What is the Purpose of an Employment Verification Letter?

An employment verification letter (VOE) is an official document from an employer that confirms an employee’s past or current employment status. These letters are most commonly requested by third parties like landlords, mortgage lenders, and property managers for credit or rental applications. According to Jennifer C. Loftus, MBA, SPHR, PHRca, National Director for Astron Solutions, "I typically receive requests when an employee is applying for a mortgage, refinancing, or looking to move into a new apartment." Other common reasons include financial aid applications, adoption proceedings, immigration matters, and background checks by prospective employers.

What Information Must You Include in an Employment Verification Letter?

The key to an effective VOE is brevity and accuracy. HR experts recommend including only the following factual, employment-related information:

• Employee’s full name
• Current or most recent job title
• Dates of employment (start date and, if applicable, end date)
• Status (e.g., active, voluntarily resigned, laid off)
• Current or final salary or wage (often required for loan applications)
• Company name and work address

Lynn Kitson, SPHR, SHRM-SCP, CEO of Lynk Benefits and HR Solutions, emphasizes that the letter is "typically very brief." The goal is to provide the necessary verification without oversharing. For clarity, here is a breakdown of standard information to include:

What Details Should You Avoid in an Employment Verification Letter?

The most critical rule is to avoid subjective statements about the employee's performance or character. "When an employer says something about a former employee, it carries a great deal of weight," warns Kate Bischoff, SHRM-SCP, an HR consultant and employment law attorney. She advises sticking strictly to objective data. Avoid discussing:

• Reason for termination beyond broad categories (e.g., voluntary, involuntary, layoff).
• Job performance reviews or opinions.
• Disciplinary history.
• The specific reason behind a sensitive request (e.g., a custody case), as the letter could become evidence.

A "deep dive of the termination reason should be avoided," agrees Kitson. Providing unnecessary details can expose the company to defamation, discrimination, or invasion of privacy lawsuits.

How Can You Ensure Your Employment Verification Process is Legally Compliant?

Compliance is non-negotiable, and laws vary by state and locality. Before fulfilling any request, the person handling it must be current on relevant laws. For example, several states have "salary history bans" that prohibit employers from asking about past salary during recruitment; this can extend to what you can disclose in a VOE for a prospective employer. Some states even provide official forms for this purpose. To streamline the process and ensure compliance, experts recommend:

1. Appoint a Designated Responder: Assign the task to an HR manager or a specific executive to maintain consistency.
2. Create a Formal Policy: This policy should define what information will be released and to whom. For instance, you might disclose salary to a mortgage lender but not to a future employer, depending on local laws.
3. Require Employee Authorization: Always ask employees to sign a release form before divulging information, unless the request is from a government entity that does not require one.

What is the Correct Format for an Employment Verification Letter?

A standard business letter format on official company letterhead is appropriate. The letter should be dated and prepared by the authorized HR contact or an executive. Below is a sample template based on industry standards.

Sample Employment Verification Letter:

[Company Letterhead]

[Date]

Mr. John Murphy Credit Analyst ABC Bank 1 Main Street Anytown, FL 55555

Re: Employment Verification for Suzanne Lu

Dear Mr. Murphy:

This letter confirms that Suzanne Lu is currently employed at DEF Company as an Accounts Payable Specialist. She was hired on May 15, 20XX, and is an active employee with an annual salary of $68,000.

Please contact me at 800-555-5555 if you require any further information.

Sincerely,

Jane Doe HR Manager DEF Company

To summarize, an effective employment verification letter is concise, factual, and compliant. Remember to:

• Confirm only basic employment details.
• Avoid subjective opinions or performance-related comments.
• Always have a clear company policy and obtain employee consent.
• Stay updated on federal, state, and local disclosure laws to protect your organization.