Adverse Action Notification
The adverse action process is an important responsibility for any employer. Both pre-adverse action and adverse action notifications are required under the Fair Credit Reporting Act (FCRA), and an employer’s failure to follow the strict conditions of the statute can result in very costly fines and penalties. As a service to our clients, EmployeeScreenIQ will develop a two-step process for adverse action and execute it when needed.
Pre-Adverse Action Notice
EmployeeScreenIQ will send a Pre-Adverse Action Notice and all required attachments to your applicant, including:
- Notice letter that includes information for the applicant
- A copy of the consumer report you relied on to make your decision
- A copy of “A Summary of Your Rights Under the Fair Credit Reporting Act”
Providing candidates with advance notice gives them the opportunity to review the report and tell you if it is correct.
Adverse Action Notice
If you decide to take adverse action based on information in a consumer report, EmployeeScreenIQ will send the applicant or employee written notice of this action.
The Adverse Action Notice includes a notice letter containing:
- The name, address, and phone number of EmployeeScreenIQ
- A statement that EmployeeScreenIQ supplied the report, but did not make the decision to take the unfavorable action and can’t give specific reasons for it
- A notice of the person’s right to dispute the accuracy or completeness of any information the consumer reporting company furnished, and to get an additional free report from the company if the person asks for it within 60 days.
Benefits of Setting up Adverse Action Services with EmployeeScreenIQ:
- Implementation Process: Our staff of trained professionals work with you to establish a reliable and consistent process that works within your hiring policies and background screening process.
- Form Management: Our compliance department provides sample pre-adverse and adverse action notices, and makes sure that all pre-adverse and adverse action notices are accompanied by statutorily required forms and attachments.
- Time Savings: Our trained staff sends notices promptly upon receipt of an order. Letting us to perform the administrative task of sending notices allows the hiring process to move more quickly, and frees up your staff to focus on the hiring decision.
- Audit trail: Our systems document the issuance of pre-adverse and adverse action notices to relieve you of the administrative task.