Adverse Action Compliance Update
We’ve updated our Adverse Action Notification in an ongoing compliance integration effort. Compliance improvements protect applicant rights, while saving your company from avoidable legal issues.
Previously, there were two document options that have been removed:
- Step #3-A: Final Adverse Action – Employment Denial
- Step #3-B: Final Adverse Action – Rescinding the Offer
These are now merged into one document:
- Step #3: Final Adverse Action – Empl. Denial/Rescinding Offer
The form now includes a field to fill in the reason for employment denial. This field is required in CA and recommended “best practice” by the EEOC. Now, when you open the document “Step #3: Final Adverse Action – Empl. Denial/Rescinding Offer,” the entry field below will appear, allowing you to enter the reason for declining employment.
Please note that once the description saved and sent to the applicant it can’t be altered. In your response consider a brief but accurate description of why employment was denied. Read more about our adverse action procedure here.
Legal disclaimer: we are not attorneys and this information is provided based upon the Fair Credit Reporting Act and our experience as a consumer reporting agency. Clients are advised to consult with counsel to create their own policies and procedures with regards to hiring suitability.