Managing State and Local-Level Regulations for Adverse Action

Adverse action is rarely an easy process. The stress of making the decision alone can weigh on HR professionals and significant legal requirements can amplify the feeling. Don’t let the adverse action process make you sweat. In our guide about simplifying adverse action, we break down the basics required by the Fair Credit Reporting Act (FCRA) to give employers a better understanding of the process.  

Sometimes, state and local jurisdictions have additional requirements that can make navigating adverse action complicated. For instance, certain jurisdictions have ban-the-box or fair-chance hiring laws that add to an employer’s requirements before making employment decisions based on background check results. Having tools that guide and simplify the process can increase speed, improve efficiency, and help you manage the process consistently to make sure your organization remains compliant. 

State and local jurisdiction requirements

Even if you align with Federal requirements, it does not always mean you are in the clear. To take this a step further, in addition to federal and state guidelines, some jurisdictions may also have other unique additional regulations. For instance, California has state-level guidelines employers are required to follow when considering adverse action based on whether a candidate's criminal history has a "direct and adverse relationship" with the job's specific duties. In addition to California’s laws, different jurisdictions within the state, such as Los Angeles and San Francisco, have varying guidelines on how long employers are required to wait for candidates to dispute a claim before moving forward with filing adverse action. 

Some states also have additional documentation requirements as part of the adverse action process. For instance, in Philadelphia, employers are required to provide a copy of an individualized assessment that evaluates how the criminal record relates to the job applied for, along with a copy of the background check report and Summary of Rights required by the FCRA, and wait a minimum of ten days for the candidate to respond before taking final action.

A tailored approach to adverse action

Keeping up with state and local laws that affect adverse action decisions can seem overwhelming, but we are here to help ease the burden.

Mapping out adverse action by state

Our new interactive compliance map is built to help you easily identify jurisdictions with additional document requirements and regulations that affect adverse action.

Introducing the Verified Credentials Adverse Action Tool 

To help you and your team manage the process, we are now offering a new Adverse Action Tool. This allows employers to seamlessly create, send, and track pre-adverse and adverse action notices—all within the Verified Credentials screening platform. Our new tool also helps you control and adjust pre-approved documents and assessments for your team to ensure consistency so that you can focus on other important details. 

What sets our proprietary Adverse Action Tool apart? 

• Audit-Ready Records: Our tool maintains delivery details and the comprehensive records needed to ensure you are always prepared for audits. 
• Customization: Add custom templates or upload assessments to tailor documents to your specific needs. Documents can be edited or added to help you keep up with changing requirements over time. 
• Stay in the know: Alerts can be set up to be sent to your email any time the adverse action process is initiated. 
• Flexible Delivery Options: Send notices via email, downloadable PDF, or even U.S. Mail, ensuring you have the method that works best for your organization. 
  

Our Adverse Action Tool is built with your needs and daily routine in mind to help you complete the adverse action process faster and more consistently. 

Interested in learning more about our new Adverse Action Tool? Talk to our team now to learn more.