Adverse action

Under the Fair Credit Reporting Act, adverse action includes refusing to hire, place or promote someone because of information in a consumer report such as a background check. Before taking it, the employer must send a pre-adverse action notice with a copy of the report and the federal summary of rights, then give the person a reasonable chance to dispute errors or explain. If the decision stands, a final adverse action notice follows, naming the screening company and explaining the right to dispute. Many states and cities add their own fair-chance steps.