Skip to content

Things employers must consider when taking adverse action

adverse action.” Adverse action can also be letting go an existing employee, or refusing promotions based on similar information. For the sake of this blog post, however, we will focus on taking adverse action during the hiring process. Taking adverse action is legal, so long as you do not discriminate against a candidate in your action, and as long as you have the candidate’s written permission to conduct these kinds of background checks. It’s not illegal to require someone to sign their permission for these types of background checks in order to receive job offers or promotions either. (In fact, at-will employment is valid in every state in the U.S., though some states offer exemptions in order to protect employees.) In order to conduct credit checks, employers must follow two federal laws: the Fair Credit Reporting Act and the Equal Credit Opportunity Act. The former allows applicants to review their credit report if adverse action is going to be taken based on information in the report, to ensure that the information contained in it is correct. (The applicant then has a set amount of time — which varies by state — in which he or she must contest the information with the credit reporting agencies.) The Equal Credit Opportunity Act simply requires that employers not take adverse action based on any discriminatory factors, such as the person’s age, sex, race, religion, national origin or other protected classes. These laws and considerations are important to keep in mind during the pre-employment process in order to avoid lawsuits. Because there are rules surrounding how permissions must be gained in regards to credit checks, and laws vary by state in how the applicant can contest adverse actions, let Mind Your Business help you get started with your pre-employment screening process.]]>

You May Also Like

Check out these additional posts from Mind Your Business.

Hire Qualified Seasonal Employees with a Certified Background Check

Black Friday 2019 is just weeks away, and retailers across the nation are already searching for qualified seasonal help. Finding good seasonal employees that are dependable, honest, and skilled in customer service means happier customers and larger sales. A worthy goal considering that last year Americans spent over $700 billion during the holiday season! Not…
Read More

Be Inspired: Podcast featuring MYB, Inc. Founder and CEO Karen Caruso

The word “no” can take you pretty far in life. Need proof? Listen to the podcast from September’s Power of Partnering Marketplace Conference. Karen Caruso, founder and CEO of MYB, Inc., reveals on GWBC Radio how the word “no” pushed her to use her existing job skills to create her own business. Learn how the…
Read More

Business Myth Busters: What Is a Certified Background Check?

In today’s business economy, background checks are a standard part of the pre-employment process. With so many options available, how do you ensure you’re receiving a certified background check? We tackle some of the myths surrounding the industry. Myth: A certified background check is too expensive.Truth: A low-cost or free report usually means the company…
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.