Adverse Action
Any hiring decision based on a consumer report; FCRA §615 requires a two-step notice process.
Definition
Adverse action is any decision — including refusal to hire, rescinding an offer, or terminating employment — based in whole or in part on information in a consumer report. The Fair Credit Reporting Act §615 requires a pre-adverse notice with a copy of the report and the FCRA Summary of Rights, a waiting period (SafestHires uses 5 business days, in line with FTC guidance), then a final adverse-action notice. State laws (CA ICRAA, NY Article 23-A, NYC FCA, Los Angeles County Fair Chance) layer additional obligations on top.
Sources
Related terms
- Pre-Adverse Action Notice — The first letter in the FCRA §615(a) two-step adverse-action sequence.
- FCRA — The federal statute (15 U.S.C. §1681) governing consumer reports, including pre-employment background checks.
- ICRAA — California's parallel statute to the FCRA for investigative consumer reports.
- Article 23-A (NY Correction Law) — New York's eight-factor analysis before disqualifying a candidate for a conviction.
Need help applying this?
SafestHires builds these rules into the screening workflow so adjudicators do not have to remember them. See the compliance hub for the relevant statute set, or contact us to talk through a program.