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Adverse Action: The Two-Step Process

This is the final piece in a series on avoiding unnecessary risks in the hiring process, published in response to the documents jointly published by the EEOC on background screening and the recent rash of litigation. In previous posts, we have discussed the need for a valid authorization form and how to include that in the application process, when and how to employ a hiring matrix, and the necessity of individualized assessments. As you review your own hiring and employment screening process, please email KRESS with any questions you might have. Our experienced staff members are current on the latest releases form the EEOC and FCRA, and we will keep you current and in compliance with every screen you perform.

[h2]Incorrect Adverse Action Procedure Leads to Lawsuits[/h2]

CVS, Disney, and Domino’s Pizza are some of the employers who have landed in court for skipping a step or two.  The adverse action process is required by the FCRA when you find any adverse background information that would disqualify a candidate for employment under your company policies.  Under the FCRA, employers have to give applicants notice before a hiring decision is made informing them that they might be rejected based on the results of a background check. Using this process, the applicant has an opportunity to see the background report, challenge any inaccuracies in the report, and clear any negative information that is disqualifying him or her from the job. The FCRA also requires a second notice, after a final decision has been made not to hire. This two-step process is a continued source of confusion for many employers. The statute requires that a copy of the report and information on how to dispute the information be provided to the applicant.  If you miss one step of the process, you could be forced to learn your lesson in court, defending a class action lawsuit like other companies we mentioned.

KRESS offer adverse action letters via mail or email to our clients. Email KRESS for more information on this or any other compliance issues you might have with employment screening.

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