Equifax Workforce Solutions

Equifax Workforce Solutions
Company type	Subsidiary
Industry	Financial services, Data services, Business process outsourcing
Predecessor	TALX
Founded	1972
Founder	H. Richard "Rick" Grodsky and others
Headquarters	St. Louis, United States
Area served	United States
Key people	Bill Canfield (former President and CEO)
Products	The Work Number (employment and payroll database)
Parent	Equifax

Equifax Workforce Solutions, previously known as TALX (pronounced "talks"), operates as a fully owned subsidiary of Equifax, with its headquarters located in St. Louis, Missouri. Established in 1972 under the name Interface Technology Inc. by a group of founders including H. Richard "Rick" Grodsky, the company initially focused on delivering interactive voice response technology. Bill Canfield became President and CEO in 1986 and took on the role of Chairman two years later in 1988.

The firm manages "The Work Number", a comprehensive database containing employment and payroll details for 54 million individuals across the United States, collected from more than 7,000 employers. This makes it the largest provider of employment data in the United States as of 2015.

History

TALX launched its initial public offering on NASDAQ in 1996, selling 2 million shares at $9 each and raising $18 million. At that point, TALX specialized in interactive communication technologies that combined voice response, fax, email, Internet, and intranet systems to facilitate automated access to corporate data repositories. Its flagship employment and income verification product, The Work Number for Everyone, streamlined access to employment and wage information for credit evaluation purposes.

By the early 2000s, The Work Number had become TALX’s main source of revenue. In March 2002, TALX expanded its human resources outsourcing capabilities by acquiring The Frick Company (based in St. Louis) and Gates McDonald (located in Columbus), enhancing its offerings in unemployment cost management and HR applications. To concentrate on payroll-related services, TALX divested its e-Choice Benefits Enrollment Services unit in April 2003.

Between 2002 and 2005, TALX pursued growth through multiple acquisitions including Johnson & Associates LLC, TBT Enterprises Inc., UI Advantage Inc., Jon-Jay Associates Inc., Employers Unity Inc., as well as segments of Sheakley-Uniservice Inc. During this period, it also developed a suite of payroll-focused HR services such as W-2 Management, I-9 Management, Tax Credit and Incentive Management, along with Online Paperless Pay solutions.

In 2007, Equifax purchased TALX for $1.4 billion. By 2010, TALX was fully assimilated into Equifax’s organizational structure. In October 2012, Equifax renamed TALX to Equifax Workforce Solutions.

SEC investigation of TALX

The SEC conducted an inquiry into TALX’s secondary stock offering from August 2001 and related financial disclosures. In August 2004, TALX agreed to pay a $2.5 million penalty to settle this matter. Additionally, then-President and CEO William W. Canfield reached a settlement with the SEC involving $859,999 in disgorgement along with $100,000 in civil fines.

In March 2005, the SEC brought fraud allegations against TALX’s former Chief Financial Officer Craig N. Cohen for employing deceptive accounting practices to meet financial goals in 2001 by overstating income by approximately $2.1 million (65%), which artificially boosted the company’s stock price. Cohen resigned in January 2004 amid TALX’s restatement of revenue figures spanning 1999 to 2003 due to accounting inaccuracies. While the US District Court dismissed six out of seven charges against Cohen in April 2007, it held him responsible for inadequate internal controls and improperly classifying two projects as bill-and-hold sales transactions, resulting in a $5,000 civil penalty.

FTC Inquiry into TALX

In June 2006, TALX proactively engaged with the Federal Trade Commission (FTC) following an initial probe concerning whether its acquisitions within the unemployment compensation and employment verification markets were diminishing competition. This investigation was prompted by apprehensions about TALX's growing dominance achieved through targeted acquisitions in these industries.

Data Breach Incident in 2017

From April 2016 through March 2017, Equifax Workforce Solutions suffered a security breach that exposed sensitive tax information of individuals. This event raised significant issues regarding the company's data protection measures and its overall risk management framework.

Critiques of TALX

In April 2010, The New York Times revealed that TALX, operating as an Equifax subsidiary, faced allegations of rigorously challenging unemployment benefit claims to reduce expenses for its employer clients. This approach reportedly resulted in some qualified applicants being denied benefits, underscoring difficulties within TALX's operational model and client relations.

References