Adverse Action continues to present problems for employers.
Over the years, CIC has stressed the importance of using the Adverse Action process when denying employment based on the background check report. It is important to not only use it, but use it correctly. Over the last 5 years, the number of Adverse Action lawsuits brought against employers has increased at an alarming rate and the solution is so simple; use the Adverse Action process and use it as outlined in the Fair Credit Reporting Act, better known as the FCRA. The penalties for not strictly following FCRA can be catastrophic if it becomes a class action. A recent case against Petco, was settled for $1.2 million. Whether it is not using the process at all, omitting one of the steps or using an old copy of the FCRA Summary of Rights, cases have been brought and won costing employers millions of dollars.
CIC has, as a service to our clients, an option for them to generate the Adverse Action letters directly from the screening portal. In addition, all of our background check reports include a copy of the most recent FCRA Summary of Rights and Credit Freeze. What could be simpler! Please take the Adverse Action process seriously and do your due diligence when denying employment based on a background check report.
Learn more about the Adverse Action process.