Adverse action has been the source of many lawsuits for employers across the U.S. With ban-the-box regulations popping up at local and state levels, navigating the employment-screening part of the hiring process can be even more cumbersome. Understanding what the FCRA requires under its adverse action regulations is the starting point for compliance. Here’s what you need to know:
WHAT IS ADVERSE ACTION?
Adverse action is the process that all employers must follow when rejecting potential employees and terminating, reassigning, and failing to promote current employees due to the results of an employment background check. Adverse action is a process often misunderstood by employers, but a mistake in this process can land you in court. Here’s a look at the process:
- Pre-Adverse Action Notice: Informs the candidate that you are considering not moving forward with the employment process based on information in the background report.
- Waiting Period: The FCRA requires a reasonable amount of time before taking final action, so the candidate has an opportunity to dispute any incorrect or outdated information.
- Adverse Action Notice: Once you have waited the required amount of time–including time required for the resolution of any dispute–you must provide a final notice of your decision if you have decided not to move forward with the candidate.
The waiting period is where things can get precarious, and KRESS is here to help.
HOW DO YOU COMPLY WITH THE FCRA’S ADVERSE ACTION REGULATIONS?
One way to remain in compliance with the FCRA’s adverse action requirements is to automate your response to any adverse information that a background check finds. KRESS offers automated adverse action, which you can learn more about in our infographic. This allows you to rest easy knowing your hiring practices are automatically compliant, fair, and transparent for all applicants.
KRESS places their clients’ best interests first and we provide you with an automated adverse action system. With this in place you can rest easy knowing your hiring practices are compliant, fair, and transparent for all applicants. This complimentary service is available to every KRESS client.
Employers often pose questions regarding rules and regulations regarding Adverse Action and its notices, refer to our FAQs for more information. To learn more about KRESS’ automated adverse action process, contact us for a free consultation today.