Adverse Action

License Verification

License verification is the process of confirming that a professional license held by an applicant or employee is valid, active, and issued by the appropriate regulatory authority. Unlike an MVR (Motor Vehicle Record), which reports driving history, license verification focuses on occupational or professional credentials such as nursing, medical, real estate, or trade licenses.

Compliance note

  • Employers must ensure that any required professional license is current and in good standing to meet regulatory and industry compliance standards.
  • Verification may include checking expiration dates, disciplinary actions, and issuing authorities through state or national databases.
  • License verification conducted for employment purposes falls under the Fair Credit Reporting Act (FCRA) if performed by a consumer reporting agency.
  • Healthcare, education, and financial industries often have additional federal or state-level mandates requiring documented license verification.

Frequently Asked Questions

Q: What is license verification used for in background screening?
A: It confirms that a candidate’s professional or occupational license is valid, active, and appropriately issued by a recognized authority.
Q: How is license verification different from an MVR?
A: License verification checks professional credentials such as nursing or contractor licenses, while an MVR reports driving records and violations.
Q: What information is included in a license verification?
A: Results typically include the license number, issue and expiration dates, issuing authority, status, and any disciplinary actions on record.
Q: Are employers required to verify professional licenses?
A: Yes, in regulated fields such as healthcare, finance, and education, verifying professional licenses is required by law or accreditation standards.

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Disclaimer

The resources provided here are for educational purposes only and do not constitute legal advice. We advise you to consult your own counsel if you have legal questions related to your specific practices and compliance with applicable laws.