Sometimes, the information revealed through employer background check services leads to what is known as “adverse action,” like withdrawing a job offer. CredentialCheck explains what all managers should know before taking adverse actions to prevent legal compliance issues.
Any employer who regularly runs pre-employment background checks will eventually encounter a situation where negative information is revealed about a job candidate, such as an undisclosed criminal record or a failed drug test. Likewise, routine screening may reveal something negative about an existing employee that merits dismissal or denying a promotion. Should this information be acted upon, that is called “adverse action.” Any action was taken due to adverse information that negatively impact an individual’s job falls under the umbrella of adverse action.
However, every employer should be aware that they cannot simply take adverse action without following the proper procedures. The Fair Credit Reporting Act (FCRA) outlines specific instructions for handling these situations within full legal compliance. It is especially important to continue following these rules during the current period of substantial, rapid hiring across many businesses. The basics are as follows.
First, the individual must be issued a pre-adverse action letter that discloses what negative information was discovered and notifies them that their employment may be affected. A copy of the background check or other screening report should also be provided, along with a summary of their rights. This notice provides the individual an opportunity to respond to the information and correct it if appropriate during the required waiting period. Employers should keep copies of all the documents and note the date that the notice was sent.
When the waiting period ends, employers should review the individual’s response and any submitted corrections. If they decide to proceed with adverse action, they must release either an electronic or hard-copy notice of adverse action explaining the decision. This notice must clearly explain to the individual that they may dispute the decision, inform them that they may request another copy of the report, and disclose if the screening was outsourced to an outside background screening company. Contact information for any outsourced company should also be provided.
To learn more about how CredentialCheck helps employers ensure compliance while taking adverse actions, call (888) 689-2000. Information about their employee screening services can also be found on their website. The company is located in Troy, MI, and serves clients from coast to coast.
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Company Name: CredentialCheck
Contact Person: Media Relations
Email: Send Email
Phone: (888) 689-2000
Address:575 E Big Beaver Rd, Ste 300
City: Troy
State: MI
Country: United States
Website: https://credentialcheck.com/