Third-Party Source

Definition - What does Third-Party Source mean?

A third-party source is an organization that exists to provide a verification service to other organizations for a profit. Most companies verify the credentials of existing or potential employees to ensure that their employees are sufficiently qualified or certified to perform their job. Instead of hiring people to perform this function, companies make use of third party organizations who search the databases of educational institutions and other employer organizations to verify the information supplied to the employer.

WorkplaceTesting explains Third-Party Source

Third-party sources tend to either operate in a specific area or nationwide. An employer that makes use of a third-party source must comply with the Fair Credit Reporting Act by first informing and gaining consent from the applicant to perform the verification. If the result of the verification causes the employer to take adverse action against the applicant, the applicant must be given an adverse action notice with the name, address, and telephone details of the third-party source. The employer must also inform the applicant in writing that the third-party source was not responsible for the decision made.

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