What is a comapnies responsibility regarding the verification of a worker’s employment?

UPDATED: Sep 29, 2022

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What is a comapnies responsibility regarding the verification of a worker’s employment?

My wife bought a new car. A week later she put in her 2 weeks notice, to go to a better job. When the bank called to verify employment, the employer told them she had given notice. The bank then refused the loan. Now the car, her only source of transportation, has to go back. Is there anything we can do and is an employer allowed to do that?

Asked on November 6, 2015 under Employment Labor Law, Kentucky


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Of course the employer could say that--they simply told the truth, which is that your wife had put in her notice. Anyone, employer or not, may tell the truth about a situation. Her employer is under no obligation to lie for her, and, in fact, could have made itself liable to the bank if it had misrepresented your wife's employment situation: if the employer had told the bank that her employment was stable, then her new job did not work out (as new jobs sometimes don't) and she was left unable to make the car payments, the bank could potentially have sued the employer for misleading it and causing it to make a loan which it would not have made had it known your wife had put in notice. This occured because your wife bought a car basically while changing jobs, which is an inherently risky thing to do.

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