By Sandra Christopher, National Sales Representative/Account Manager at B&B Reporting Inc.
The term “adverse action” is defined very broadly by Section 603 of the Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681-1681y. “Adverse actions” include all business, credit, and employment actions affecting consumers that can be considered to have a negative impact as defined by Section 603(k) of the FCRA – such as denying or canceling credit or insurance, or denying employment or promotion.
Before an Employment Background Check is Requested by the Employer
The term “adverse action” is defined very broadly by Section 603 of the Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681-1681y. “Adverse actions” include all business, credit, and employment actions affecting consumers that can be considered to have a negative impact as defined by Section 603(k) of the FCRA – such as denying or canceling credit or insurance, or denying employment or promotion.
Before an Employment Background Check is Requested by the Employer
- Employer provides applicant with a Disclosure and Authorization form written in a clear and conspicuous manner that the applicant understood and was separate from any other document.
- Applicant signs the Disclosure and Authorization form giving you written permission to perform a background check.
- Employer provides applicant with A Summary of Your Rights Under the Fair Credit Reporting Act. It’s important to guide the applicant through the adverse action process so they understand their rights, your rights, and how a final decision will be made.
After A Background Check Report is Received by the Employer
- The results on the background check for this applicant is not favorable and may cause you to disqualify them for employment.
Before Taking Any Adverse Action – Pre-Adverse Action
The employer must provide the applicant:
- A notice of the adverse action – Pre-Adverse Action Notice
- A copy of the background report
- A summary of the applicants right (FCRA version)
- Time for applicant to review/dispute the report.
Decision to Take Adverse Action – Adverse Action Notice
The employer must provide the applicant:
- The name, address, and telephone number of the agency that provided the report (include a toll-free number if the agency is a nationwide CRA).
- A statement that the agency did not make the adverse decision and is not able to explain why the decision was made.
- A statement of the applicant’s right to obtain from the agency, at no charge, the information in the applicant’s file if the applicant requests the report within 60 days.
- A statement of the applicant’s right to dispute directly with the agency the accuracy or completeness of any information provided by the agency.
Adverse action is not a comfortable situation for all involved. The employer uses this process to make informed decisions that will keep a safe and productive workforce environment. Unfortunately, based upon a background check, not all applicants will qualify for employment with certain companies. Our recommendation is to use an FCRA compliant, Consumer Reporting Agency (CRA) for pre-employment background screening to protect the applicant and your company!
About B&B Reporting Inc.
B&B Reporting, Inc. is an employment background screening company that was incorporated in June of 1995 by owner and CEO, Patricia Blankenship. Headquartered in Scottsboro, Alabama with our national sales office in Alpharetta, Georgia, B&B Reporting Inc. provides unparalleled background screening products and services to organizations nationwide and internationally. Our commitment to integrity, accuracy, quality research, and client satisfaction is what allows B&B to prosper in an increasingly competitive market. For more information about B&B products and services, contact Sandra Christopher, National Sales Representative/Account Manager at schristopher@bbreporting.com or (216) 408-1012.
