Adverse Action

Post-Adverse Action

Post-Adverse Action refers to the final step in the adverse action process after an employer decides not to hire or promote a candidate based on a background check. Under the Fair Credit Reporting Act (FCRA), employers must send a post-adverse action notice to the individual after the decision is made, confirming the action and providing a copy of the consumer reporting agency’s contact information.

Compliance note

  • Employers must issue a written post-adverse action notice after taking an adverse employment decision based on a background check.
  • The notice must include the consumer reporting agency’s contact details and inform the candidate of their right to dispute inaccurate information.
  • Failure to follow the FCRA’s adverse action process can result in enforcement actions or civil penalties.
  • Employers should also consider Equal Employment Opportunity Commission (EEOC) guidance when evaluating background check results.

Frequently Asked Questions

Q: What is the purpose of a post-adverse action notice?
A: It informs the applicant that a final employment decision has been made based on their background report and provides details about their rights to dispute any inaccurate information under the FCRA.
Q: When must a post-adverse action notice be sent?
A: The employer must send the notice only after the adverse decision has been made, following the pre-adverse action notice and waiting period.
Q: Can an applicant dispute the decision after receiving a post-adverse action notice?
A: Yes. The notice includes the contact information for the consumer reporting agency so the applicant can dispute inaccurate or incomplete data in their report.

DISCLAIMER: The information provided in this glossary is for general informational purposes only and should not be construed as legal advice. While we strive for accuracy, EDIFY Background Screening does not guarantee that the definitions or explanations are complete, up to date, or error-free. Employers should always consult with competent legal counsel to ensure compliance with applicable laws and regulations.


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