Adverse action

What adverse action is

Adverse action is an unfavorable employment decision based, in whole or in part, on the consumer report.

Module 1 of 7 · 7 min read

The FTC lists examples: rejecting an application, reassigning or terminating an employee, denying a promotion, or taking any other adverse employment action based on information in a consumer report. Sending the notices is not the same as deciding to reject. This lesson is educational and is not legal advice.

Read the sources

PreHireBadge Academy courses are free and educational. Completing a course or earning a certificate is not legal advice, not a professional license, and not a legal credential. Laws change. Read the cited sources and ask a qualified attorney about your own hiring decision.
  • The report is one input, not a score of hire or do-not-hire
  • You still own the decision
  • The product will not send a final notice early
Check your understanding

Check your understanding

Is the report itself a hire-or-reject score?