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.

Is Marijuana still tested for pre-employment?

Many states have legalized Marijuana which has many employers wondering what to do when their applicant’s drug test comes back positive. Pre-employment drug testing is a common practice for many employers that wish to mitigate risk and maintain a safe work environment for all employees. Most employers choose to run a 5-panel or 10-panel drug…
Read More

OSHA Regulations and a Potential New Hiring Trend

The Occupational Safety and Health Administration (OSHA) announced an emergency temporary standard (ETS) that states that companies with 100 or more employees would need to ensure that their employees are fully vaccinated by January 4th, 2021. If the employees are not vaccinated, they would need to test negative for COVID-19 weekly. This includes individuals who…
Read More

Pennsylvania Motor Vehicle Reports Aren’t Slow – Your Background Screening Provider Is.

Motor Vehicle Records Reports are important searches for many different industries. They provide valuable information about an applicant’s driving history. Driving infractions are not reportable in county or statewide criminal searches, so be sure to add a Motor Vehicle Search if you are hiring drivers for your company. The benefits are that you will be…
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.