Legal Question in Employment Law in Iowa
We attempted to contact a previous employer as part of a background check on a perspective employee. The company referred us to a 3rd party agency that requested we, 1) pay for the dates of employment, and 2) we provide the prospect's SSN. Is it legal for the 3rd party company to charge us? Is it legal for us to disclose that type of information about someone who applies for a position with us?
1 Answer from Attorneys
1. Sure it is legal. A bit crass and low budget, but legal. Of course, you are not obligated to give them any money, but they are under no obligation to give you any information if they do not care to do so. Basically, they have something you want, and they have decided to charge for this information. My guess is all you will get are dates of employment, which depending on how much they want, is probably not very valuable information.
2. Yes, if you have the prospective employee's explicit written consent. Because it is an unrelated party, I would ensure that you have a carefully crafted authorization which covers this circumstance. Let me know if I can be of further assistance.
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