An employer's 10-step adverse action checklist
March 30, 2016
Fair Credit Reporting Act (FCRA), when employment is denied following a background check. The first step is a pre-adverse notice, sent before a final decision is made. The second step is a notification of adverse action, sent once a hiring decision is made. Adverse action has a critical role to play in effective hiring, but it also comes hand-in-hand with potential legal pitfalls and a litany of regulations. To keep your business safe, here’s a 10-step checklist to keep in mind:
- Include both pre-adverse and adverse action steps in your process
- Provide the applicant with a copy of their background check, to allow them to respond to any issues and inaccuracies
- Include the information of the employment screening company to the applicant in case they want to dispute information
- Provide the candidate a reasonable period of time to explain the information in the report or to dispute the accuracy of the reported information
- Document all communication that occurs during the screening process
- Consider ban the box laws in your region (consult with your lawyer and employment screening firm to make sure you’re aware of local and state regulations)
- Provide the candidate with an individualized assessment to allow them the opportunity to highlight that they can be employed
- Protect the privacy of the information you receive. As a general rule of thumb, this information should be released on a “need-to-know” basis only.
- Do not ask for a release of information that’s not strictly necessary. Not only will you increase your risk of violating labor and federal credit reporting laws, you will also waste the time and energy of everyone involved.
- Consider keeping the job vacancy open while the adverse action process is being performed
You May Also Like
Check out these additional posts from Mind Your Business.
Choosing the Right Background Check Provider for Continuous Background Checks
With continuous background checks, the importance of selecting the right provider cannot be overstated. The decision to integrate continuous monitoring into an organization’s processes comes with the responsibility of choosing a background check provider that aligns seamlessly with the unique needs and values of the organization. Let’s explore the key considerations in selecting the ideal…
Read More 
What are Continuous Background Checks?
Continuous background checks are a departure from traditional screening practices and are a paradigm shift in how companies vet their employees. Unlike the conventional one-and-done approach, continuous background checks involve regular, ongoing assessments of an individual’s criminal history and qualifications. Continuous background checks can be used at varying frequencies, ranging from daily to weekly or…
Read More 
The Top Five Reasons to Run a Background Check
Running a background check is more than just a precaution; it’s a crucial step toward ensuring transparency, accountability, and peace of mind. Let’s explore why running various types of background checks is essential in various aspects of life. Hiring the Right Candidates In the hiring process, running a background check is a cornerstone of pre-employment…
Read More Quality and Precise Results, On Time!
Let us know about your screening needs to get a custom quote. We work with businesses big and small as well as the government. Which means we have a package of solutions for your organization as well.