While I'd want control over my theoretical HR department, I don't have a problem with the efficiencies found with outsourcing very specific, repeatable requests such as verification employment.
What I do have a problem with is when it results in wholesale privacy invasion as described in this article.
The government uses private companies to dodge constitutional protections as well. If someone has a file on me, I should have the right to at least SEE what's in it for free. Though, I'd prefer that sharing information about private individuals was an opt-in thing by default.
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