[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-276958-105":3,"detail-sidebar-cat-1-en-105":81,"doc-detail-276958-en":127},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","background-screening-navigating-the-adverse-action-process","Background Screening: Navigating the Adverse Action Process","","This white paper explains how employment background screening can lead to “adverse actions” under the Fair Credit Reporting Act (FCRA) and outlines the employer duties tied to those situations. It defines adverse action as employment decisions that negatively affect applicants or employees, including denial of employment, termination, or changes such as denials of promotion. It details pre-adverse disclosures, the required adverse-action notice contents, timing considerations, and why thorough, FCRA-compliant screening reduces legal and reputational risk.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/letters/","Letters",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/background-screening-navigating-the-adverse-action-process/276958/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/background-screening-navigating-the-adverse-action-process/276958.png","ImageObject",442,249,{"name":42,"@type":43},"Aldword","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-19","2026-09-15",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",9,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"What does “adverse action” mean in the employment background screening context?","Question",{"text":63,"@type":64},"It refers to employment decisions that adversely affect applicants or employees, such as denying employment, terminating employment, or denying a promotion or transfer.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"What are employers required to do before taking an adverse action under the FCRA?",{"text":68,"@type":64},"Employers must provide the consumer with a copy of the consumer report and a written description of FCRA consumer rights before the adverse decision is made.",{"name":70,"@type":61,"acceptedAnswer":71},"What information must be included in an FCRA adverse action notice?",{"text":72,"@type":64},"The notice must include the consumer reporting agency’s contact details, a statement that the agency did not make the decision, dispute rights, and the right to an additional free consumer report within 60 days.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},276958,1790469868,{"code":4,"msg":82,"data":83},"success",[84,89,94,99,104,109,114,118,123],{"id":85,"doc_module":22,"doc_module_name":25,"category_name":86,"show_sort_weight":87,"slug":88},11,"Presentations",90,"presentations",{"id":90,"doc_module":22,"doc_module_name":25,"category_name":91,"show_sort_weight":92,"slug":93},12,"Resumes",80,"resumes",{"id":95,"doc_module":22,"doc_module_name":25,"category_name":96,"show_sort_weight":97,"slug":98},14,"Invoices",70,"invoices",{"id":100,"doc_module":22,"doc_module_name":25,"category_name":101,"show_sort_weight":102,"slug":103},15,"Posters",60,"posters",{"id":105,"doc_module":22,"doc_module_name":25,"category_name":106,"show_sort_weight":107,"slug":108},16,"Social Media",50,"social-media",{"id":110,"doc_module":22,"doc_module_name":25,"category_name":111,"show_sort_weight":112,"slug":113},17,"Forms",40,"forms",{"id":115,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":116,"slug":117},18,30,"letters",{"id":119,"doc_module":22,"doc_module_name":25,"category_name":120,"show_sort_weight":121,"slug":122},21,"Paper Templates",5,"papers-templates",{"id":124,"doc_module":22,"doc_module_name":25,"category_name":125,"show_sort_weight":4,"slug":126},158,"General","general-158",{"code":4,"msg":82,"data":128},{"doc_id":79,"user_id":129,"nickname":42,"user_avatar":130,"doc_module":22,"category_id":115,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":131,"file_id":132,"file_url":133,"file_type":134,"file_size":135,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":136,"language":137,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":138,"faqs":139,"seo_title":140,"seo_description":12,"update_tm":141,"read_time":26},2336478940917,"https://ap-avatar.wpscdn.com/davatar_6f874abed73319feea01a86fa6f0fab8","WHITE PAPER  \nBACKGROUND SCREENING: NAVIGATING THE ADVERSE ACTION PROCESS  \nMost companies use some form of pre-employment screening to protect against hiring risks. Pre-employment screening allows employers and prospective employers to check for prior criminal convictions, verify employment records, get employment references, and more. The goal is to create a safe (and more productive) workplace that lends itself to a positive employer brand and work environment. Often, employers will outsource background screening to a third-party background screener to perform the background check and perhaps also to provide related support services to the employer. These employment background checks are “consumer reports” that are regulated by the federal Fair Credit Reporting Act (FCRA) 1 and analogous state laws. Employers have specific obligations under the FCRA, including requirements with respect “adverse actions.” This paper2 examines employer adverse-action-related obligations under the FCRA. While this paper focuses solely on FCRA requirements related to adverse actions in the employment context, it is worth noting that state and local law may impose additional requirements in the form of “ban-the-box”,“fair chance” or other laws, regulations or ordinances, depending on where the employer operates.  \nWHAT IS ADVERSE ACTION?  \nIn short, adverse action in the employment context means a denial of employment or any other decision for employment purposes that adversely affects any current or prospective employee.3 This could mean denying employment to an applicant or terminating an employee, but can also mean other actions, such as denying a promotion or transfer.  \nSo what happens when the background screening company finds information about a candidate that might cause a company to deny employment? In today economy, you are most likely interviewing and screening more candidates than ever before. This comes along with a higher risk for adverse action complaints based on employment rejection. Additionally, an offer to one candidate, often means turning down many other equally-qualified candidates.  \nThe FCRA requires that employers provide notice to individuals before any adverse decision is made based in whole or in part on information from a consumer report and a separate notice is required if an adverse action actually is taken against the individual.“Pre-Adverse Action” or “Pre-Decision” notices are processes that inform the applicant or employee that the company is considering not moving forward with the employment process or is altering its original offer or employment conditions in response to undesirable information in a consumer report and gives the applicant or employee an opportunity to respond before an adverse action is taken.  \nIf an adverse action ultimately is taken a second notice is required to inform the consumer of this and provide certain additional information required by the FCRA. This latter notice often is referred to simply as an “Adverse Action” notice.  \nThese employer responsibilities arose from a concern that inaccurate or incomplete information in a consumer report could cause applicants to be denied jobs or cause employees to be denied promotions.  \nAs an employer, your background screening process must be thorough and compliant in order to minimize legal and reputational risks.  \nBackground Screening: Navigating the Adverse Action Process | 2  \nWHERE LEGAL RISK COMES IN  \nAs an employer, if you use employment screener to assess an individual’s suitability for employment, and the process turns up information that may result in your decision not to hire the candidate, there are specific rules you must follow under the FCRA, as noted above. Failure to comply with the FCRA’s pre-adverse and adverse action requirements can expose an employer to regulatory enforcement actions and, in some cases, private litigation including class actions. This is true not only with respect to the adverse-action related notices","cbCaimmrcOhLeVke","https://ap.wps.com/l/cbCaimmrcOhLeVke","pdf",4617413,6,"English","# Background Screening: Navigating the Adverse Action Process\n## What Is Adverse Action?\n## Where Legal Risk Comes In\n## Pre-Adverse Action Disclosures\n## Adverse Action Notice\n## Litigation Avoidance","[{\"question\":\"What does “adverse action” mean in the employment background screening context?\",\"answer\":\"It refers to employment decisions that adversely affect applicants or employees, such as denying employment, terminating employment, or denying a promotion or transfer.\"},{\"question\":\"What are employers required to do before taking an adverse action under the FCRA?\",\"answer\":\"Employers must provide the consumer with a copy of the consumer report and a written description of FCRA consumer rights before the adverse decision is made.\"},{\"question\":\"What information must be included in an FCRA adverse action notice?\",\"answer\":\"The notice must include the consumer reporting agency’s contact details, a statement that the agency did not make the decision, dispute rights, and the right to an additional free consumer report within 60 days.\"}]","Background Screening: Navigating the Adverse Action Process | PDF",1789496595]