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Applicant Notices - Pre-Adverse and Adverse Action Notices

Updated: Jul 15, 2022

Have you ever run a background check on an applicant, or a current employee for hiring, promoting, or transferring purposes? Have you ever gotten back negative information on a background check? What did you do?

Many employers see these questions as straightforward you may even think “wouldn’t you deny the applicant and move on?” If you do, you could be at risk for a lawsuit.

The Fair Credit Reporting Act (FCRA) requires that when an employer decides not to hire an applicant based on the information contained in a background check, they must provide a written notice to the applicant before taking the adverse action. This notice is known as a pre-adverse action notice. Pre-adverse action notices should notify the applicant that you may take adverse action as well as provide them a copy of the consumer report and, a summary of their rights under the fair credit reporting act.

The purpose of the notice is to allow the applicant to review the information contained in the report. If the report is inaccurate or incomplete, the applicant should contact the consumer reporting agency that provided the background report. The employer should allow a reasonable length of time after the notice is sent before making a final decision; 5-10 business days is our recommendation. If your final decision is to deny employment, then you must follow up with the adverse action notice.

If you have any questions on background checks, or investigative reports call 1.800.452.0030 ext. 0!


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