After more than 30 years in the employment data industry—as a private investigator, founder of one of the nation’s largest background check companies, and a direct witness to thousands of workplace investigations—it is rare to see a federal judge openly signal that a dominant business model deserves deep antitrust examination.
The Case Against Equifax’s Work Number
Recently, Judge John F. Murphy Jr. of the United States District Court for the Eastern District of Pennsylvania ruled that an antitrust lawsuit against Equifax’s employment verification division, known as The Work Number, could proceed to discovery. The plaintiffs, Greystone Mortgage and First Financial Lending, allege that Equifax has locked up critical parts of the employment verification market through exclusive contracts with leading payroll providers and large employers.
Equifax’s Work Number service facilitates verification of income and employment (VOIE) information for landlords, lenders, employers, and other verifiers. By collecting payroll and employer data in advance, it acts as a centralized point of contact for verification requests.
The complaint—accepted by the court as plausible for the purposes of denying dismissal—alleges the following key points:
- The complaint alleges that Equifax maintains exclusive or de facto exclusive contracts with major payroll providers—such as ADP, Paychex, and Intuit QuickBooks—as well as large employers including Walmart and Home Depot. It further alleges that Equifax provides payments or shares profits with these data providers to secure exclusivity, limiting competitors’ access to employment data. Should the case proceed, discovery may shed further light on the details and extent of these arrangements.
- Through these exclusive deals and a series of acquisitions of smaller competitors, Equifax allegedly “forecloses” access to at least 40% of the VOIE market, severely limiting competition.
- This “moat” around valuable data impedes rivals and leads to supracompetitive prices for verifiers—with banks, landlords, and background check firms facing inflated costs and fewer options.
- Equifax’s argument that The Work Number operates as a two-sided platform (akin to American Express, jointly serving data providers and verifiers) was rejected by the court at the motion to dismiss stage. The court found the allegations support a one-sided market theory, where Equifax buys payroll data and repackages it into a distinct product sold to verifiers.
Why This Matters to Different Stakeholders
For Employers: Many employers may be unaware that their payroll provider’s contract funnels employee data into such verification systems. Employees typically don’t know when their employment data is regularly shared or accessed by third-party vendors. When employees discover this, frustration is often directed at their employer, undermining trust, workplace morale, and potentially harming reputation. Consider contacting www.MyEmployment.com soon to discuss options.
For Employees: Employment verification data often includes sensitive personal information—names, job titles, pay rates, addresses, and more. These data feeds can be transmitted frequently (weekly, biweekly, or daily) without employees being notified when verifiers access their information. Sign up for a free account at www.MyEmployment.com to start protecting your data
For Verifiers: Landlords, lenders, and background check companies frequently pay inflated fees for this information. The complaint alleges these high prices result from limited competition created by Equifax’s exclusive control over key data sources.
The Larger Context of Legal Proceedings
It is important to recognize that this is not a verdict or a finding of wrongdoing. Judge Murphy’s ruling on February 18, 2025, simply determined that the allegations are sufficiently plausible to warrant full discovery, where contracts, pricing, exclusive arrangements, and revenue-sharing details will be thoroughly examined. This marks the first time the employment verification industry’s competitive practices will face rigorous antitrust scrutiny.
How MyEmployment Differs: Empowering Choices and Transparency
MyEmployment’s platform was built to address these industry challenges by giving power back to the people whose data matters most—employees—while serving employers and verifiers efficiently and ethically.
- Employee Data Control: MyEmployment offers employees the option to opt in for enhanced data access controls and real-time notifications when their employment data is requested. Consent is not universally required; employees who prefer simplicity or have already authorized verifications can proceed without additional interruptions. This respects diverse employee preferences and avoids unnecessary process complexity.
- Employer Options: Employers can choose to manage employee verification data on an in-house, white-labeled platform that upholds privacy and fosters trust with their workforce. This gives employers greater control and clarity, distinguishing them as protectors of their employees’ privacy. The days of dumping your employee data to third parties are coming to a scrutinized end.
- Verifier Benefits: Verifiers receive fast, compliant, and transparent verification results at a lower cost without hidden fees or opaque pricing models.
- No Cost Structure: The system is free for employers, employees, and payroll providers.
What This Means for You
The spotlight is now on employment verification practices. Employers have a clear choice: when employees ask how their personal data is handled, will your organization be seen as a transparent, caring steward of privacy, or just another player in a closed, opaque system?
For employees concerned about their data, understanding the verification and sharing process is now more critical than ever. You can inquire whether your data is being shared and request control tools if available.
For verifiers, adopting transparent and competitive verification services can drive down costs and speed up decision-making.
Take Action Today
- Employers interested in a privacy-first, cost-effective verification system should consider a free analysis of their current setup here: https://www.myemployment.com/employers/.
- Employees wanting to check on the use of their employment data or to opt in for notifications can sign up here: https://www.myemployment.com/employees/sign-up/.
Disclaimer
This article is for informational and marketing purposes only and does not constitute legal advice. No entity has been found liable in the ongoing antitrust case, and the February 18, 2025, court ruling merely allows the case to proceed to discovery. Descriptions of MyEmployment’s features and benefits represent company policies and may differ from other service providers. For detailed legal documents, please visit: https://fingfx.thomsonreuters.com/gfx/legaldocs/zdvxayqzypx/Greystone%20Mortgage%20v%20Equifax%2020250218.pdf.