Certified Staffing Profesional Practice Exam

What must an employer do before taking adverse action based on background check reports?

1. Notify the applicants

2. Ignore the reports

3. Contact the clients

4. Request additional references

The correct answer is: Notify the applicants

Before an employer can take adverse action based on background check reports, it is essential for them to notify the applicants. This is a critical step outlined in the Fair Credit Reporting Act (FCRA), which mandates that employers must provide individuals with a notice when they intend to take negative action based on information in their background checks. This notification informs the applicants of their rights and the adverse action that may result from the information found in their report. This process allows applicants a chance to understand the information that is being used against them and, if necessary, to dispute any inaccuracies or incomplete information. Failure to provide this notice not only undermines the applicant's rights but can expose the employer to legal repercussions. The other options, such as ignoring the reports, contacting clients, or requesting additional references, do not address the legal obligation that employers have before making adverse decisions based on background check findings. Ignoring the reports is not a viable option, as it could lead to uninformed hiring decisions. Contacting clients or seeking additional references does not substitute for the required notification process and might distract from the individual's right to transparency regarding their background information.