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Tag: adverse action

Adverse Action- When is it needed- How do you do it?

Hiring a new employee is a big decision for any business, big or small and isn’t taken lightly. When a company decides to not hire an employee based upon findings in a background screening or credit report, the next step is the adverse action process. Adverse action is a two-step process, a pre-adverse action package is […]

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How a Hiring Technicality Can Land Companies in Court

A slew of lawsuits has been filed lately against companies accused of violating FCRA in their hiring processes. The most recent company to join that list is Starbucks Corp. for a violation in its adverse action process. A Colorado man named Jonathan Rosario filed a class action lawsuit against Starbucks after being denied a job […]

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What is “Adverse Action”?

And why does it matter? Making a decision not to hire an applicant based on the findings of a credit report is considered an adverse action. When this happens the employer is bound by FCRA to send the applicant two notices: a pre-adverse action notice and an adverse action letter. Each must contain specific information […]

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