Adverse action, ban the box, double compliance, and other areas you need to be aware of to avoid lawsuit.
By Elizabeth McLean, TLNT
Adverse action provisions of the federal Fair Credit Reporting Act have become a major lawsuit trigger. Adverse action describes the process employers must follow when rejecting, terminating, reassigning, or failing to promote an individual due, in part, to the results of a background check. The FCRA sets out three important steps that employers must follow when taking adverse action. The whole process is neatly laid out in this adverse action checklist.
If you’re not located in a ban-the-box jurisdiction, you can focus on complying with the three-step adverse action process set out under the FCRA. However, if you are in a ban the box jurisdiction, you should answer the following questions.
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