What action must be taken to comply with the FCRA in the event the applicant is being denied employment with our company?
Pursuant to the requirements of the FCRA, prior to an employer taking adverse action with respect to a consumer’s employment status (i.e., hire, promotion, reassignment, or retention) that is based in whole or in part on the information provided in a consumer report, the employer must first provide the consumer with a “pre-adverse action” letter that includes a copy of the consumer report and a summary of the consumer’s rights under the law. The law is silent on the time period that must elapse before actually taking the adverse action (e.g., deciding not to hire the applicant). However, the general practice is to allow approximately 3 to 5 days from “pre-adverse” notice to “adverse” action. This time period allows the consumer time to dispute any erroneous information that may be contained in the consumer report. Upon taking the adverse action, the employer is required to provide the consumer with an “adverse action” letter notifying him or her of the action taken.
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