Shocking Secrets Revealed: How Companies Profit from Selling Employee Records

Many of us have given out personal information during job applications or new hire processes without thinking much about where that data goes. The details we share—our full name, social security number, addresses, and salary—seem private and sensitive. We trust that companies will handle this information responsibly. However, what happens to this data after it leaves our hands might shock you.

Over the past two decades, as job seekers and employees, our personal information has become accessible to a wide range of entities. One major player in this space is Equifax, a company widely known for credit reporting. It turns out that Equifax also collects and sells employee data through a database called The Work Number. This means that many companies hand over their employees’ private employment records to Equifax, which in turn makes this data available to others for a fee.

The Work Number: A Database You Didn’t Know You Were Part Of

The Work Number stores a vast amount of data about employees. This includes birth dates, social security numbers, job titles, salary figures, pay history (including raises and hours worked), health and dental insurance coverage, and even unemployment claims. Essentially, this database holds nearly every employment detail you might consider private.

If you have tried applying for a loan, renting an apartment, or going through any kind of financial check, you might have indirectly used this information. Many lenders, landlords, and other organizations with "permissible purpose" under the law can pay a small fee—approximately $20—to retrieve your complete employment and income history without your direct consent.

Who Contributes to This Database?

Some of America’s largest companies share data with Equifax’s Work Number. These include tech giants like Facebook (Meta), Amazon, Microsoft, Oracle, as well as Walmart and even institutions like Harvard Law School and the Commonwealth of Pennsylvania. This database receives weekly payroll data representing around one-third of the U.S. working population.

Nearly 75% of Fortune 500 companies and 85% of federal agencies, including state governments, courts, colleges, and small business organizations, participate in this system. What’s more unsettling is that these companies pay Equifax for collecting, organizing, and then reselling the data.

How This Data Is Used and Exploited

Employers use the data, in part, to verify employment history and salary for various purposes such as workers’ compensation claims. However, the reach of this information extends beyond internal use. The data is shared with third-party debt collectors, mortgage lenders, credit card companies, landlords, auto financing companies, student loan processors, and even government officials.

In simpler terms, when these organizations need to verify your employment or income, instead of contacting your employer directly, they can access this rich data pool through Equifax. This streamlines the process for them but significantly reduces your control over your personal information.

Privacy Concerns and Data Breaches

Many people assume that Equifax, as a reputable company, handles this data securely and ethically. Unfortunately, the reality carries a darker side. Back in 2017, Equifax suffered a massive data breach that exposed sensitive information on millions of people. This breach allowed unauthorized parties access to social security numbers, birthdates, and employment records stored in The Work Number.

Furthermore, there have been other security issues. For example, the consumer portal that lets people view their own employment and salary data online was compromised. Hackers could potentially gain access using just a social security number and date of birth—two pieces of information often stolen in previous breaches.

The combination of massive data breaches and the wide distribution of private employment information raises substantial worries about who really holds your data today and how it might be used.

What Does Equifax Say About Its Data Use?

Equifax promotes itself as a careful steward of personal data. Their privacy policies mention discretion and responsible use. Yet, a closer look at their terms shows that they may use personal data for marketing, product development, and presenting targeted offers. This means your most sensitive workplace and salary information is sold to affiliated and non-affiliated companies who might market products to you or advertise services.

Data buyers include advertising networks, consumer credit agencies, data analytics providers, and more. Essentially, your information moves through numerous networks and digital marketplaces, where it can be layered with other personal details for profiling or browser targeting.

How to Check What Data Is Collected About You

Equifax offers a way for individuals to view the data The Work Number holds on them. However, doing so requires an employer ID or number, which may not be easy to obtain. This situation limits transparency since ordinary employees might not know what information has been shared by their employers.

Given the risks tied to breaches and unauthorized access, it may be wise to regularly monitor your credit reports and employment records where possible.

The Bigger Picture: Data as a Commodity

This entire system illustrates how employee data has become a commodity. Companies pay to submit records to Equifax, which then profits by reselling this information. Those who contribute data often rely on it to verify employment, but the secondary uses stretch far beyond simple background checks.

Your most private information—including salary history and health insurance coverage—is re-packaged and sold. That opens the door for unwanted solicitation, potential discrimination, and even identity theft.

With vast amounts of data passing through these channels, it becomes easier for entities to create detailed personal profiles without your direct permission. These profiles can influence what ads you see, what loan offers you get, or even how a debt collector approaches you.

Protecting Yourself

While it might seem overwhelming, there are steps you can take:

• Regularly check your credit reports from the major credit bureaus.
• Use identity protection services to monitor for unusual activity.
• Ask your employer if your data is being shared with The Work Number or similar services.
• Request copies of your employment verification reports if possible.
• Protect sensitive personal information like your Social Security number and date of birth.
• Be cautious about the information you share online or in conversations that might be logged.

Final Thoughts

The fact that your employer likely sells your personal employment data to large data brokers, including Equifax, reveals a hidden side of the modern labor market. While many people believe their information stays private within a company, the reality is far different. The combination of widespread data sharing, reselling, and the threat of data breaches means that your employment records might be less secure than you think.

Understanding how your data is used can empower you to take control where possible. Transparency is scarce, but awareness offers the first line of defense in protecting your privacy in an age where personal information has become a valuable commodity.