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How to Properly Send an Adverse Action Notification

As an employer, it’s never fun to receive a report that will lead to an adverse action against an employee or applicant. In addition to the bad news that a current or prospective employee won’t be able to fill the position where they’re needed on your team, the process of notifying the employee or applicant of this decision is often confusing and difficult.

Many of this process’s difficulties stem from the Fair Credit Reporting Act (FCRA), which includes strict rules on how and when current or prospective employees must be notified of the action. According to these laws, if a company uses any consumer or investigative report in whole or in part to deny someone either employment or promotion, the company is legally obligated to provide two notifications to those applicants or employees. Typically, this is notice that they will not be hired or retained.

The first notification is a mandatory pre-adverse action notification, which includes a copy of the report, a summary of the applicant’s or employee’s rights, and contact information for the reporting agency. Once the employee or applicant receives this first notification, the FCRA mandates that they are granted reasonable time to review dispute this information.

After the employee has been allotted this time, the FCRA states that employers must send another notification to inform the employee or applicant of the final decision regarding the adverse action towards their employment or promotion.

The complicated and lengthy nature of this process only brings unnecessary stress to employers and HR professionals. Fortunately, KRESS Employment Screening offers employers the complementary gift of an automated adverse action service along with the report that we provide. This seamless tool will begin the process to send the adverse action notifications as soon as you contact KRESS with your approval to do so, and you won’t have to worry from that point on. You’ll never have to do it yourself again!

Contact KRESS to learn more about our background screening reports and automated adverse action process today!

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