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Adverse Action is an action companies take based on the information in a background check report that negatively affects applicant's employment. This could mean denying employment, but can also imply denying a promotion or transfer.
In general, background checks typically cover seven years of criminal and court records, but can go back further depending on compliance laws and what is being searched.
Employers can and do run pre-employment credit checks as a part of your application process, but they need your permission to do so. Getting a better paying job can be a good step towards improving your credit score.
Background checks in Georgia for employment must comply with the FCRA's seven-year lookback period. This means that your pre-employment background check reports will not include arrest information for arrests that did not result in conviction from seven or more years ago.
Unfortunately, while federal laws prevent discrimination in the workplace regarding race and gender, no such laws exist to prevent being denied a job due to poor credit history.
Thanks to the Fair Credit Reporting Act (FCRA), employers can't go checking your credit history behind your back. They must have written consent before pulling an applicant's credit history.
Pre-Adverse Action The pre-adverse action letter can be delivered via electronic or hard copy form. Its purpose is to inform the applicant that you will not hire them for the position based on information uncovered in the background check.
Continue with the hire or take adverse action Taking adverse action is regrettable for both the organization and the candidate, but eventually you'll need to decide to rescind your job offer or proceed with hiring.
For example, state law does not prohibit employers from running credit checks on applicants or employees. Further, state law imposes no restrictions on an employer's ability to check an applicant or employee's social media sites.