Although adverse action lawsuits rarely happen when compared to the number of job applicants processed each year, these lawsuits seem to have made the headlines over and over again in recent years. Companies often neglect compliance in this key area, and for some businesses this create a lawsuit nightmare and unfair decisions for candidates. The FCRA does not take this neglect lightly.
In order to remain compliant with the FCRA, these three steps must be followed when adverse information is found through a background check:
- Notifying the applicant of potentially adverse information prior to the hiring decision.
- Supplying the applicant with the background check and other essential paperwork.
- Providing the applicant with a second notice after the hiring decision has been made.
This process can be time-consuming, especially for growing companies, and becomes a frustration for HR managers and employers. The law requires that a copy of the background check report and information on how to dispute the information be provided to the applicant. Missing just one step of this process can result in a lawsuit, which is what has happened to Domino’s Pizza, CVS, and Disney.
Following the adverse action process laid out by the FCRA not only keeps you out of court, but it also ensures that every candidate’s experience with your company is fair. That’s why KRESS Employment Screening created the Automated Adverse Action process.
Using the Automated Adverse Action tool, employers can promptly and properly notify applicants of adverse information found in their background check. With this tool, KRESS does all the work for you in notifying the candidate and providing them the information they need on how to proceed.
Here’s How Automated Adverse Action Works: [Download Infographic]