Feature Showcase: TEAM Background’s Automated Adverse Action Process

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One of the most important factors in a pre-employment background check is ensuring you have an adverse action process in place. TEAM Background has the capability to automate this process and make sure your company is abiding by adverse action laws.

What is adverse action?

An adverse action notice is a letter, either sent via mail or email, informing an applicant that they were not chosen to be hired due to information discovered in their background check. If a background check leads to a company deciding not to hire an individual, the company is required by law to send the applicant both a pre-adverse and an adverse action notice.

Both a pre-adverse action notice and an adverse action notice must also include a copy of the applicant's report and a Summary of Your Rights Under the Fair Credit and Reporting Act. Typically, a Dispute Request Form would also be include with a pre-adverse action notice, but this is not required.

To learn more about adverse actoin and when it's appropriate to take, we recommend this article from the U.S. Equal Employment Opportunity Commission.

Automated Adverse Action in TEAM Background

TEAM can handle pre-adverse and adverse action notices on clients' behalf. Rather than having to manually send an adverse action letter, TEAM clients can initiate a one-click process to automatically notify an applicant of the adverse action.

The Ordering Process

Once a client decides to move forward with the adverse action process, a few steps will have to be completed. See the table below for a chronological walk-through of both the Client and Applicant actions.

A two-column 5-row table containing the steps for the Adverse Action Process. Top left cell reads "Client Actions." Top right cell reads "Applicant Actions." The second row left cell reads "Client completes both the pre-adverse action letter and individualized assessment and reassessment form. (Upon completion, both are automatically sent to the Applicant by TEAM via email.)" Second row right cell is blank. Third row left cell reads "At this point, the Client can now actively monitor the received status of the email, and whether the Applicant has acknowledged it yet." Third row right cell reads "Applicant recieves email including pre-adverse action letter, individualized Assessment and Reassessment form, copy of Applicant's report, and copy of FCRA Summary of Rights (and any applicable State Summary of Rights). Applicant must acknowledge that they have received the email by clicking on the included link." Fourth row left cell reads "Once the appropriate amount of time has passed, the Client receives an email notification prompting completion of the reassessment form and final adverse action letter. (Upon completion, both are automatically sent to the Applicant by TEAM.)" Fourth row right cell is blank. Fifth row left cell is blank. Fifth row right cell reads "Applicant receives final adverse action letter and reassessment form – Adverse Action Process is now complete.
AuthorTEAM Staff
07.31.2024

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