Did you know if you decide not to hire an applicant based in whole or in part on his/her background screening results, the Fair Credit Reporting Act (FCRA) requires you to complete a process known as Adverse Action? The FCRA allows individuals to sue employers for damages in federal court. Additionally, the Federal Trade Commission, other federal agencies and the states may sue employers for noncompliance and obtain civil penalties. Failure to comply with Adverse Action can bring you severe legal repercussions and end up costing your company large sums in settlement fees.

Adverse Action is affordable, and easy to use, through Premier Employment Screening Services. All candidates must be informed and provide written consent to have their consumer report pulled. Premier provides the consent form for you. Once a background check is completed, we will notify your company’s designated representative if adverse items are found on a consumer report in regards to a potential candidate.

“Rejected” candidates must receive a Pre-Adverse Action disclosure. Accompanying the Pre-Adverse Action letter, the applicant also receives a copy of the consumer report, a Summary of Rights under the FCRA, as well instructions on how they can dispute any of the findings.

If an applicant disputes the report, Premier conducts a re-investigation. It is important to note that any and all disputes raised by “rejected” candidates must be handled by Premier Employment Screening Services as we are your Consumer Reporting Agency. If the finding is accurate or if there is no dispute, Premier will then send out an Adverse Action notice notifying the applicant that an employment offer cannot be given due to the adverse items on their report.

A job applicant gives you the okay to obtain a consumer report as part of the pre employment screening process. Although the applicant’s criminal history reveals a small misdemeanor which is a negative factor, the final reason the applicant isn’t hired is because they lack relevant job experience which was totally unrelated to the background check. What’s your responsibility?

In any case where information in a consumer report is a factor in your decision — even if the report information is not a major consideration — you must follow the procedures mandated by the FCRA. In this case, you would be required to provide the applicant a pre-adverse action disclosure before you reject his or her application. When you formally reject the applicant, you would be required to provide an adverse action notice.

Premier Offers Two Options for your Adverse Action Needs
Discover how Premier Employment Screening Services simplifies the process for you. As your background screening company, Premier is able to handle the process from beginning to end. It’s that simple! Contact your Customer Service Representative today at 800.350.7941 to learn more about Adverse Action Notification and how Premier is simplifying the process for you.