Protecting Your Business with Pre Adverse Action and Adverse Action Notices

Written by Andrew Dose on November 17, 2017

Whenever employment is denied based on information found in a background screening, the Fair Credit Reporting Act (FCRA) stipulates that companies are required to notify their applicants. Through establishing a standard of thoroughness in the notification process, hiring managers can set their companies up for success in the long run.

Nationsearch customizes this applicant notification procedure to reliably fit our clients’ needs. When we are informed that a Pre Adverse Action Letter is required, Nationsearch will begin the process by sending the applicant:

  1. A standardized letter clarifying the situation
  2. The individuals’ completed background screening report
  3. A summarized copy of their consumer rights under the FCRA

It is suggested (but not mandatory) that five business days are allowed for the applicant to initiate a dispute. If the applicant does not dispute the information in the background screen, NationSearch will then send the follow-up Notice of Adverse Action. This serves to finalize the company’s decision to reject employment.

In a continual effort to protect our clients and minimize liability, the NationSearch team stays up-to-date with FCRA regulations and adheres to them throughout the background screening process. Applicant notifications are easily integrated into our clients’ screening process, and every FCRA background check form can also be customized to fit specific business needs.

Here are some (but not all) benefits of sending out Pre Adverse and Adverse Letters:

  • Protection: works to protect companies, hiring managers, and consumer reporting agencies (CRAs).
  • Government Regulation: by law, companies must remain FCRA compliant.
  • Avoid Penalties: companies can be penalized without warning by government agencies that monitor compliance, such as the EEOC.
  • Paper Trail: as evidence of FCRA certification compliance, companies can use each Notification of Pre-adverse/Adverse Action for future reference.
  • Applicant Rights: gives applicants time to dispute information that may have been misreported while notifying applicants of adverse action being taken.
  • Ease of Use: NationSearch integrates the Pre-adverse/Adverse Action seamlessly into our clients’ existing processes and can do so at any time.

Is your organization properly using Pre-adverse and Adverse Action letters as a routine step in your professional staffing? If not, contact NationSearch today to discuss how we can help streamline and enhance your hiring and employee onboarding process to best benefit your company.

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Topics: Helpful HR Resources

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