Pre-Adverse Action
Pre-adverse action is the step where an employer notifies a candidate that information in a background check may negatively affect a hiring decision. The notice gives the candidate time to review the report, dispute inaccuracies, or provide context before any final adverse decision is made under the FCRA.
Compliance note
- Provide the candidate a written pre-adverse action notice with a copy of the background report and the FCRA Summary of Rights.
- Allow a reasonable waiting period before taking final action; many employers use five business days, but requirements can vary by jurisdiction and policy.
- Consider EEOC guidance and perform an individualized assessment where appropriate, focusing on job-relatedness and business necessity.
- Do not make a final decision until the dispute window closes or any reinvestigation is complete; document all communications.
Related Terms and Posts
Frequently Asked Questions
Q: What must be included in a pre-adverse action notice?
A: The notice should state that you are considering an adverse decision based on the background report and must include a copy of the report and the FCRA Summary of Rights, plus instructions on how to dispute.
A: The notice should state that you are considering an adverse decision based on the background report and must include a copy of the report and the FCRA Summary of Rights, plus instructions on how to dispute.
Q: How long should I wait after sending the pre-adverse action notice?
A: Many employers wait at least five business days to allow the candidate to dispute or provide context. Some states or localities may expect longer; follow your policy and any applicable laws.
A: Many employers wait at least five business days to allow the candidate to dispute or provide context. Some states or localities may expect longer; follow your policy and any applicable laws.
Q: What if the candidate disputes the report?
A: Pause your decision and initiate reinvestigation through the screening provider. Do not take final adverse action until the dispute is resolved and you have reviewed the updated results.
A: Pause your decision and initiate reinvestigation through the screening provider. Do not take final adverse action until the dispute is resolved and you have reviewed the updated results.
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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