Pre-Employ Blog

The Adverse Action Nightmare: Are at Risk For Being Sued?

Posted by Bob Mather on April 19, 2016
Hundreds of companies have recently been subject to significant financial penalties and civil lawsuits as a result of their failure to properly notify applicants or employees who were subject to some form of adverse action based upon information obtained from background checks.
 
ECOA_FCRA_books.pngPre-adverse and adverse notifications are strictly required by the Fair Credit Reporting Act (FCRA) as a consumer protection, and the FCRA also provides a list of best practices for companies in regards to fulfilling their adverse action notification requirements.
 
This whitepaper examines the potential issues that can occur when the proper FCRA procedures for any adverse action following a background check are not performed. It also provides a brief overview of the proper FCRA adverse action notification protocols, including:
  • What is pre-adverse action
  • What is adverse action
  • 9 states with specific forms required
  • What is required in your letters/notices
  • 3 companies that paid over $19 million dollars in settlements

Download the White Paper

When you use consumer reports to make employment decisions like hiring, promotion, reassignment, and retention, the FCRA requires you to take important compliance steps. Learn more about keeping your company within the law and avoiding potential lawsuits by downloading the whitepaper on adverse action notice protocols in compliance with the FCRA.

Topics: FCRA, class action lawsuit, Lawsuits, Adverse Action, FCRA Compliance, Fair Credit Reporting Act

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