Companies Settle for Failing to Provide Adverse Action Notice

Nick Fishman

Two companies have agreed to pay $77,000 in civil penalties for failure to provide pre-adverse and adverse action notification to job applicants and existing employees that were either not hired or terminated due to information contained on their background checks.

See Settlements:

United States v. Quality Terminal Services

United States v. Rail Terminal Services

The Fair Credit Reporting Act (FCRA) requires such notification and the Federal Trade Commission (FTC) is responsible for enforcement.  Under the FCRA, employers are responsible for:

  • provide the subject of the background check a copy of their report
  • tell the candidate the Consumer Reporting Agency (CRA) that provided the report
  • inform the candidate that the CRA did not make the hiring/firing decision
  • notify the candidate of their right to a free copy of the report and their ability to dispute the findings

See links below for examples of compliant Pre-Adverse and Adverse Action Letters:

Sample Pre-Adverse Action Letter

Sample Adverse Action Letter

Nick Fishman
Follow Me

Nick Fishman

Nick Fishman is the co-founder of EmployeeScreenIQ, a leading, global employment background screening provider, and serves as the company’s executive vice president and chief marketing officer. He pioneered the creation of EmployeeScreen University, the #1 educational resource on employment background checks for human resources, security and risk management professionals. A recognized industry expert, Nick is a frequent author, presenter and contributor to the news media. Nick is also a licensed private investigator in the states of Ohio and Texas.
Nick Fishman
Follow Me
Tweet
Share
Email
Share