Quick Answer
A verification call confirms a narrow set of facts, usually job title, employment dates, and sometimes pay. Whether it leads to a notice depends on who supplied the answer. If you call the employer yourself, the call is not a consumer report. If a consumer reporting agency supplied the result and it played a part in a less favorable outcome, 15 U.S.C. § 1681m(a) calls for a notice naming the agency and stating the applicant’s rights. Statute text last checked October 2, 2026.
Key Takeaways
- The call confirms facts about the job. It does not tell you whether an applicant meets your other criteria.
- Who supplied the answer decides the notice. A result from a reporting agency can trigger § 1681m(a), and your own call to the employer does not.
- Source-of-income rules apply whatever the call finds. Many states and cities limit how you treat lawful income sources such as housing vouchers.
- Apply one standard. Verify every applicant the same way and write down what you asked and what you heard.
- Keep the record. Note who you spoke with, when, and what they confirmed.
1. What a Verification Call Confirms
When you verify employment, you are checking a short list: job title, dates of employment, and sometimes pay. The call tells you the job is real. It does not tell you whether the applicant’s total income meets your standard, whether the applicant’s rental history supports approval, or whether your criteria are applied evenly.
Ask only what you need for your written criteria, such as dates and income. Do not ask the employer about health, disability, family, or other characteristics the Fair Housing Act covers.
2. When a Notice Is Due
Section 1681m(a) applies when you take adverse action based in whole or in part on information in a consumer report. Two cases look alike on the surface and differ in law:
- You call the employer directly. What you learn is first-party information from your own call, not a report from a consumer reporting agency.
- A verification service supplies the result. If a consumer reporting agency assembled and sold the information, the result can be a consumer report.
If a report played any part in a denial or another less favorable outcome, such as a higher deposit or a required cosigner, the notice names the agency with its address and telephone number, states that the agency did not make the decision, and gives the applicant the right to a free report within 60 days and the right to dispute it. The notice can be oral, written, or electronic, and a written notice leaves a record. California adds its own notice rule in Civil Code § 1785.20, covered in the California adverse action guide.
3. Source of Income
Many states and localities limit how you treat lawful sources of income, including housing vouchers. California defines source of income to include public assistance and housing assistance in Government Code § 12955. Texas has no statewide source-of-income law, and state law limits local ordinances on the subject, so check your city. A clean call about a paycheck does not answer whether you may decline income from another lawful source.
If an applicant pays part of the rent with a voucher, verify the voucher portion with the housing agency and the remainder with the employer, and apply the same standard you use for every applicant.
4. Disparate Impact
HUD’s guidance on disparate impact warns against blanket screening rules that fall harder on groups the Fair Housing Act covers, and HUD’s 2016 memo applies the idea to criminal records. HUD has not issued the same guidance for employment and income screening, so treat that as an open question and keep your criteria tied to the ability to pay rent.
5. Build a Record You Can Show
- Write your income and verification criteria before you review applications.
- Use the same questions with every employer.
- Record the date, the person you spoke with, and what they confirmed.
- Keep a copy of any notice and a note of how you sent it.
A record made at the time of the call is easier to rely on later. See the guide on landlord decision records.
6. Summary
| The call confirms | The call does not settle |
|---|---|
| Job title | Whether a report-based notice is due |
| Employment dates | Source-of-income rules |
| Pay, sometimes | Disparate-impact questions |
| That the job is real | Whether your file is documented |
7. Questions Owners Ask
If I call the employer myself, do I owe an adverse action notice? Not on account of that call, because it is not a consumer report. If a reporting agency’s report also played a part in your decision, the notice applies.
Does a clean call let me decline a voucher holder? No. Source-of-income rules look at how you treat lawful income, whatever the employment call shows.
What if I use a screening service? Ask whether the service is a consumer reporting agency. If it is and its result plays a part in a less favorable outcome, send the notice and name the agency.
What This Guide Does Not Cover
This guide covers what an employment verification call confirms and how it relates to federal adverse action and source-of-income rules. It describes the law as of the check date above and does not predict how a court will rule on your facts.
It does not cover:
- State-by-state source-of-income lists.
- Employment background checks for your own staff.
- Commercial tenancies.
- Federally subsidized housing admission rules.