‘Adverse action’ is the name given to the legal process of denying employment based on the results of a background check.
Workable helps you through this process in accordance with the Fair Credit Reporting Act (FCRA). The FCRA is a federal law that governs the production and use of consumer reports for employment. The law is there to protect you, as an employer, from claims of negligent hiring and your candidate from privacy breaches or discrimination.
The EEOC and US Small Business Administration sites can provide more information about taking adverse action.
To start adverse action for a candidate:
- Click on the Disqualify button
on the candidate's profile
- Select Initiate adverse action
When you are denying a candidate employment, the FCRA requires that you first inform the candidate of your intent and the items of concern. The candidate is given 7 days to dispute the results of the report. During this time, you are unable to completely disqualify this candidate or hire an alternative in their place.
You can also cancel adverse action from the status banner option.
At your request, Checkr will email the following to the candidate on your behalf:
- Written notification of pre-adverse action (your intent to deny employment)
- A copy of the background report
- The document “A Summary of Your Rights under the Fair Credit Reporting Act”
If no dispute is received within 7 days, you will receive notification that you are able to complete the adverse action. The candidate will be notified that you are taking adverse action and have denied employment. You will have been compliant with the FCRA, and the process for this candidate is complete.
If the candidate disputes the report, Checkr is obliged to perform a further investigation at no extra charge. A new report is generated and shared with both the employer and the candidate.
If the decision is still to deny employment, adverse action can be reinitiated. The candidate will be notified and again given the option to dispute the results. A further, final investigation will take place if required.
Should the reinvestigation produce a favorable report, the candidate can be hired, and adverse action will not be taken.