A pre-adverse action refers to a preliminary notification that an employer must provide to a job applicant if the employer is considering taking an adverse action (such as not hiring the applicant) based on information found in a background check report. This process is governed by the Fair Credit Reporting Act (FCRA) to ensure that applicants have a chance to review and dispute any inaccurate or incomplete information before a final decision is made.
The pre-adverse action process involves two main steps:
Pre-Adverse Action Notice: The employer must provide the applicant with:
A copy of the background check report.
A notice of the intent to take adverse action.
A summary of the applicant’s rights under the FCRA.
Waiting Period: The employer must allow a reasonable period (usually 5 business days) for the applicant to review the report and correct any errors with the background check company. After this period, if the employer still decides to take adverse action, they must send a final adverse action notice to the applicant, informing them of the decision and providing additional information about their rights and how to obtain a free copy of their report.
ClearChecks does not have any additional fees associated with the pre-adverse or adverse action process. Reach out to our Support team with any questions.