What must be done if a company decides not to hire an applicant based on the results of their background report? Do you notify the applicant via phone and tell them they are no longer a candidate for the position or do you simply move on, waiting for them to contact you? Both of these answers are incorrect, and frankly are reckless when it comes to proper hiring practices associated with notifying disqualified applicants.
Unfortunately, we receive calls from applicants on a regular basis claiming that the company they applied with either notified them via phone that they are no longer considered for the job, or didn’t contact them at all. The first question I present to the applicant is did the company that you applied with provide a pre-adverse/adverse action letter? Alarmingly, the common answer is ”What is an adverse action letter?”
It is explicitly stated in the Fair Credit Reporting Act (FCRA) “Summary of Rights” (the form that legally MUST be provided to each applicant who will be the subject of an employment background check) that they have the right to dispute any derogatory information that is contained within their background report.
This procedure is called the Pre-Adverse/Adverse Action process, otherwise known as the “Applicant Dispute Process”.
The following spells out exactly what employers must do under the pre-adverse/adverse action process when the results of an applicant’s background remove that applicant from consideration for hiring.
Fax, e-mail or send by certified mail the above-referenced documents to the applicant. You must then allow five business days for the subject to contact the background screening company and dispute the negative or derogatory information, should they so choose. After five business days have passed, you may now move on to the Adverse Action process. The Adverse Action process is very similar to the Pre-Adverse Action process.
These steps must be followed each time an employer decides not to hire someone based on the results of their background check. Because the job market is extremely competitive and currently saturated with applicants, it is crucial that employers protect themselves from frivolous hiring lawsuits by ensuring they are abiding by the FCRA when notifying disqualified applicants.
One out of every six crimes occurs in the workplace and homicide is the second leading cause of workplace death in the U.S.
National Credit Verification Service reports that 25% of the MBA degrees it verifies on resumes are false.
72% of shrinkage is due to employee theft.
34% of all job applications contain lies.
30% of small business failure is caused by employee theft.