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Compliance Questions:

When using a consumer report (background check) in the hiring process.

Adverse Action

Q. When should you start the adverse action protocol with an applicant if there is something reported that will keep you from hiring them?

Immediately upon FULL completion of the background check.Immediately upon confirmation of negative information.After comparing the applicant’s report to other candidate’s reports.

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Q. What 3 things must your pre-adverse action letters contain?

Copy of the applicant’s signed release, description of flagged records and a copy of the consumer report.Notification that records were found and may have an adverse affect on the candidate’s hiring, an evaluation of the flagged records on the consumer report and a copy of the applicant’s right under the Fair Credit Reporting Act.Notification that records were found on the consumer report, a full copy of the consumer report and a copy of the applicant’s rights under the Fair Credit Reporting Act.

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Q. Once a Pre-Adverse Action letter is given to the applicant, how long should you wait before giving them the Adverse Action letter or denial of employment / withdrawal of employment offer?

minimum of 10 days.A minimum of 5 days.Between 5 and 10 days.

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Q. If an applicant disputes records found on their consumer report as part of your Adverse Action process, when should you make a final hiring decision?

The dispute does not have any binding effect on the hiring decision.Only after the candidate provides proof that the record does not belong to them.Only after your background screening provider has completed a re-investigation of the records in question.

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Q. When a candidate’s consumer report contains negative information that will not impede your hiring decision, such as a minor misdemeanor criminal record but also contains negative information, for example an old traffic warrant that may cause you to be unable to hire them, how should you handle Adverse Action?

Simply have the applicant clear their old warrant by paying the fine and proceed with their hiring process.Notify the applicant that their record is acceptable but that they need to clear their old warrant before placement can occur leaving it up to the candidate to clear the old warrant.Notify the applicant that the warrant will keep them from moving forward and treat it as a standard Adverse Action protocol.

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