Steps for taking Adverse Action

Step 1: Send a Notice for Pre-Adverse Action

After completing a background check that results in findings that are grounds for dismissing a current employee or denying a job applicant, the employer must issue a pre-adverse action letter. The pre-adverse action letter will serve as a notice to relay this information to the applicant.

Sending this Pre-Adverse Action Notice will notify the applicant that the information obtained from their background check may affect the decision of their employment negatively. This notice is intended to provide the candidate with an opportunity to absorb the situation and respond to any information that the report contains.

Vetty makes it simple to initiate Pre-Adverse Action directly from a candidate's file:

1. If a completed report has been flagged as "Review Needed" (and you have the applicable permissions), you will see an option in the candidate's file that says "Send Pre-Adverse Letter"
   
2. Clicking this will bring up a window prompting you to confirm the case(s) in the file that is the reason for the Pre-Adverse. Select the applicable case(s), then click "Continue"
   
3. The next screen prompts you to select if the candidate lives in any jurisdictions that have additional adverse action requirements.
   • If the candidate lives in one of the specified jurisdictions, clicking the box will direct you to a website where you can download and complete the additional required forms.
   • If the candidate does not live in any of these areas, leave the selection as "None of the above", then click "Continue".
     
4. The final page will have the email communication for you to review and edit. You may also remove attachments, if advised by your internal legal counsel.
5. You may now send the Pre-Adverse Action letter. Scroll down to the bottom and select either "Send Email" or "Print" to send the Pre-Adverse notice to the candidate.
   1. Note: Printing will not send the notice via email. After selecting the option to print, the Vetty system will ask you to confirm if the letter successfully printed. Marking "Yes" will move the file into pre-adverse sent. Marking "No" will move you back to step 1.
   2. Sending via any method will automatically attach a copy of all documents sent into the "Documents and Disclosures" section on the file.

Step 2: Waiting Period

In the adverse action process, the employer has to allow the candidate a reasonable amount of time to review the documents they received as the candidate may wish to dispute the accuracy of various aspects of their background report. The candidate must be allowed to address any of the information they believe is inaccurate within the background check report.

The employer also has to give the candidate in question a chance to provide clarifying information to either explain the findings within the report or potentially correct the record. While there is no specific waiting period defined under FCRA, historically courts have outlined 5-7 days to be the reasonable time period to dedicate to this process. Vetty's system will not allow the final adverse to be sent until 7 days have passed.

Step 3: Review the Report Results Again

After 7 days have passed, you will receive an alert notifying you that you can now send the final Adverse communication. Before doing this, however, you will want to consider the candidate’s response and corrections made to the record, if any. If, after a second review, the employer is still deciding against promoting or hiring the candidate due to the contents of the background check, the employer then must release a notice of adverse action to explain their decision.

Step 4: Send the Final Adverse

1. To send the Final Adverse communication, go back to the candidate's Vetty profile and select "Send Adverse Action Letter"
   
2. Select the reason why you are sending the letter and click "Continue"
   
3. Adjust the letter and attachments according to your legal team, or send as is.
4. Select "Print" or "Send Email". Please see the note from 5a above regarding printing the letter. 
5. This completes the process and will move the file into Adverse Action. The file will automatically be moved to the Historical section of your dashboard in 90 days.