You are considering not moving forward with a candidate who is currently in Consider status, but not sure what to do next? You’ve come to the right place.
While this process can feel daunting and complex, Yardstik has built-in measures to our platform to help you communicate with candidates effectively and follow requirements.
What is the Adverse Action process?
The Adverse Action process is followed when information is found in a background check that may adversely affect someone’s employment. If a company determines this adverse information may impact the ability to employ, retain, promote or transfer the candidate, the company then has the option to initiate the Adverse Action process.
The purpose of the Adverse Action process is to notify a candidate that you are considering not moving forward based in whole or in part on information
in the background check, to give candidates the opportunity to correct any
incomplete or inaccurate information provided in the consumer report
results, and to give a candidate the opportunity to provide additional information for your consideration before making a final decision. The Fair Credit Reporting Act (FCRA) requires a specific three-step process that is followed for these situations and is detailed below.
Launch Adverse Action
When a candidate report is completed with a Consider status, you will have the chance to review the information in the report and decide on taking one of two actions:
Proceed the Candidate
If you decide to move forward with the candidate, click on the green Proceed button. The Pre-Adverse Action letter will not be sent to the candidate.
Send Pre-Adverse Action Notice
If you decide not to proceed with hiring the candidate, click on the red Pre-Adverse Action button.
On the next screen, select the reasons that led to your decision, or use the text box to enter a custom reason and select Send Notice.
Any information selected or typed here will be visible to the candidate.
If no reason is selected or written into the custom field, no reason will appear on the letter to the candidate.
Some states require that the reason for the Pre Adverse notification must be included in this communication.
The candidate has a specific amount of time to respond during the waiting period.
The Yardstik application is set by default to seven days, but this can be changed in Account Notifications to any number between 7 and 31.
The minimum number of days for sending Final Adverse letters is 7 days. This waiting period is a requirement under the Fair Credit Reporting Act (FCRA) to allow the candidate time to review the consumer report, potentially dispute any inaccurate or incomplete information before the adverse action is finalized. During this pre-adverse period, the candidate must be provided with a copy of the consumer report, a summary of their rights under the FCRA, the opportunity to review and dispute the report if needed, and to reach out to you.
Cancel Adverse Action
If you have started the Adverse Action process but then determined you want to continue the hiring process with the candidate, you can stop the Final Adverse Action letter from being sent to the candidate.
In the Yardstik app, return to the candidate’s report and select Cancel Adverse Action. Canceling will move the candidate back to Consider status, where you can select Proceed or Pre-Adverse.
You are not able to Cancel Adverse Action once the report is in Final (Post-Adverse) Adverse status.
The FCRA three-step Process
These components are built into Yardstik to help you with compliance and peace of mind. When you initiate Adverse Actions, here’s what happens next:
1. Pre-Adverse Action Letter
This letter to the candidate references how the applicant can contact Yardstik to dispute any information returned by the background screen as well as how to contact the hiring company that the applicant is working with to provide additional information on the selected reasons. Specific requirements exist for what must be sent with this pre-adverse letter per the FCRA and local laws.
Note: Yardstik is only involved in researching any details a candidate may present as being inaccurate on his/her consumer report. If the candidate requests to explain the candidate’s completed report and how it should not impact hiring, the Yardstik end user/client is responsible.
2. Waiting/Review Period
Federal and local laws require the hiring company to wait a reasonable period to allow the applicant to receive the pre-adverse letter and act upon its results, if desired. The wait period for the Yardstik end user is set at the number of days the end user selects in system settings, with the default at a minimum of 7 days.
2 days before the Final Adverse Action letter is sent to the candidate, you will receive an email reminder that the candidate letter will be sent on X date. You still have an opportunity to Cancel Adverse Action if you choose.
3. Final Adverse Action Letter
If the candidate fails to supply additional information by the end of the waiting period or the Yardstik end user decides the information provided does not meet their company requirements, the Final Adverse letter will be sent at the end of the waiting period. This is also followed if no additional information is provided. Specific FCRA requirements exist for what must be sent with this final adverse letter that Yardstik follows.
Q&A on Adverse Action
Can I reverse a Final Adverse decision status?
No. Once a report has moved to Final Adverse, this is not able to be reversed.
Make sure that when you receive the email reminder 2 days before the report moves to Final Adverse status that you review their report at that time. This is your last opportunity to Cancel Adverse Action.
Which violation record date should I reference?
Each record will have an Offense Date, a File Date, and a Disposition Date field, although not always populated.
The Offense Date is when the violation occurred. This field is often blank and the least important of the 3 dates.
The File Date is when the initial legal documents relating to the violation are first submitted to the court.
The Disposition Date is when a legal case is finally resolved and an outcome has been reached. This is the date Yardstik references for the lookback period and when making adjudication decisions.
Disclaimer: These resources provided do not constitute legal advice and are intended for educational purposes only. We encourage our customers to seek legal counsel on adherence related to your practices and compliance with applicable state and federal laws.
To get in touch with our support team, visit the Yardstik Support Page or click the Support option in the top-right corner of the Yardstik Website.