employment verification

First of all, you are not "required" to respond at all -- it is in your employee's interest, however, that you do. You may take the safe route, and verify only name, dates of employment and position held. If, as I suspect, the creditor wants salary verification and/or likelihood that the employee will continue to be employed by you, you have three options: require the creditor to show you a release signed by the employee (or ask the employee's permission if s/he still works for you), release the information without the employee's permission, or refuse to release the information unless/until the creditor shows you the release. The latter is the safest unless you have the employee's permission to disclose. You should speak with an employment lawyer if the above doesn't provide you with sufficient information. Good luck.