{"id":395141,"date":"2026-04-13T15:22:45","date_gmt":"2026-04-13T20:22:45","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/?page_id=395141"},"modified":"2026-04-13T04:44:00","modified_gmt":"2026-04-13T09:44:00","slug":"pre-adverse-vs-adverse-action-notices-timing-content-and-templates","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/pre-adverse-vs-adverse-action-notices-timing-content-and-templates.html","title":{"rendered":"Pre-Adverse vs Adverse Action Notices &#8211; Timing, Content and Templates"},"content":{"rendered":"\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-8f761849 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">Pre-Adverse vs Adverse Action Notices &#8211; Timing, Content and Templates<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/catherine-hodder-esq\/\">Catherine Hodder, Esq.<\/a> | Legally reviewed by <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/bridget-molitor-jd\/\">Bridget Molitor, JD<\/a>\n                | Last updated\n        <time>\n                            April 13, 2026\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n<div class=\"fl-key-takeaways fl-mb30\" data-testid=\"fl-key-takeaways\">\n    <div class=\"fl-card-content\">\n        <div class=\"fl-card-body fl-card-bg-teal fl-flex fl-flex-column\">\n                            <h2 class=\"fl-card-title fl-h2 fl-no-margin\">Key Takeaways<\/h2>\n                        <p>Employment background checks must follow federal Fair Credit Reporting Act guidelines as well as state and local laws, such as getting written consent. If an employer is to deny a job or promotion, there is a specific process of sending pre-adverse and adverse action notices.<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n<p>When employers run <span data-term-id=\"58035452\">background checks<\/span> during hiring, they have to follow certain laws that protect <span data-term-id=\"58035477\">job applicants<\/span> from unfair treatment. One important rule is the <span data-term-id=\"58035450\">Fair Credit Reporting Act<\/span> (<span data-term-id=\"58035449\">FCRA<\/span>), which requires employers to notify <span data-term-id=\"58035477\">job applicants<\/span> if they find information in their background report that may affect the <span data-term-id=\"58035460\">hiring decision<\/span>. Employers must send two specific notices: a <span data-term-id=\"58035451\">pre-adverse action notice<\/span> and an adverse action notice.<\/p>\n<h2>Why Do Employers Conduct <span data-term-id=\"58035452\">Background Checks<\/span>?<\/h2>\n<p>During the <span data-term-id=\"58035467\">hiring process<\/span>, employers want to assess the applicant\u2019s fit with the role. Not only do they consider skills, education, and experience, but they also want to make sure an applicant does not have any issues that would conflict with workplace safety, damage trust, or incur liability. For example, a bank may not want to hire someone convicted of embezzlement.<\/p>\n<p>There are laws governing <span data-term-id=\"58035452\">background checks<\/span> such as the <span data-term-id=\"58035493\">federal <\/span><span data-term-id=\"58035450\">Fair Credit Reporting Act<\/span> (<span data-term-id=\"58035449\">FCRA<\/span>), and state and local <a href=\"https:\/\/www.findlaw.com\/employment\/hiring-process\/ban-the-box-laws-by-state.html\">\u201cBan the Box\u201d laws<\/a>. The <span data-term-id=\"58035449\">FCRA<\/span> requires employers who use third-party <span data-term-id=\"58035456\">background <\/span><span data-term-id=\"58035485\">screening<\/span><span data-term-id=\"58035485\"> reports<\/span> to notify the applicant and get written consent before conducting them. \u201cBan-the-Box\u201d or \u201c<span data-term-id=\"58035479\">Fair Chance<\/span>\u201d laws, by contrast, prohibit employers from asking about criminal history or running criminal <span data-term-id=\"58035452\">background checks<\/span> until after an interview or a conditional offer of employment.<\/p>\n<p>The rationale behind these laws is to prevent early-stage discrimination or screening out applicants based on <span data-term-id=\"58035498\">background check<\/span><span data-term-id=\"58035498\"> results<\/span>.<\/p>\n<h2>How To Conduct <span data-term-id=\"58035452\">Background Checks<\/span><\/h2>\n<h3>Types of <span data-term-id=\"58035452\">Background Checks<\/span><\/h3>\n<p>The different types of <span data-term-id=\"58035452\">background checks<\/span> include:<\/p>\n<ul>\n<li>\n<p><span data-term-id=\"58035482\">Criminal records<\/span><\/p>\n<\/li>\n<li>\n<p>Employment verification<\/p>\n<\/li>\n<li>\n<p>Credit checks (cards, etc.)<\/p>\n<\/li>\n<li>\n<p>Driving records<\/p>\n<\/li>\n<li>\n<p>Educational credentials<\/p>\n<\/li>\n<\/ul>\n<h3>Using a <span data-term-id=\"58035487\">Background Check<\/span><span data-term-id=\"58035487\"> Company<\/span><\/h3>\n<p>Under <span data-term-id=\"58035502\">FCRA<\/span><span data-term-id=\"58035502\"> requirements<\/span>, if an employer uses a <span data-term-id=\"58035453\">consumer reporting agency<\/span>, they must get written authorization from the <span data-term-id=\"58035477\">job applicant<\/span> before obtaining a <span data-term-id=\"58035454\">consumer report<\/span>. Any <span data-term-id=\"58035452\">background check<\/span> must be for employment purposes only and conducted through a compliant <span data-term-id=\"58035453\">Consumer Reporting Agency<\/span> (<span data-term-id=\"58035484\">CRA<\/span>).<\/p>\n<h3>Getting Consent<\/h3>\n<p>You must get written consent from an applicant or employee before conducting <span data-term-id=\"58035452\">background checks<\/span>. The <span data-term-id=\"58035449\">FCRA<\/span> requires a <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/fcra-consent-disclosure-checklist-for-criminal-background-checks.html\"><strong>stand-alone disclosure document <\/strong><\/a>that is \u201cclear and conspicuous\u201d and an written authorization that the applicant signs. These should be separate documents.<\/p>\n<h3>Timing<\/h3>\n<p>Employers must know their <a href=\"https:\/\/www.findlaw.com\/employment\/hiring-process\/ban-the-box-laws-by-state.html\">state laws<\/a> on when they can conduct <span data-term-id=\"58035452\">background checks<\/span>. For most states, questions about criminal history may be asked during the initial application or interview.<\/p>\n<p>States with <span data-term-id=\"58035479\">Fair Chance<\/span> or Ban-the-Box laws, such as California, Colorado, Connecticut, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, and Washington only allow such questions after an interview or a conditional offer of employment has been made. However, these laws vary state by state.<\/p>\n<p>Even if there is no statewide law, there may be <span data-term-id=\"58035465\">local laws<\/span>. For example, New York does not have a state law about timing of <span data-term-id=\"58035497\">employment <\/span><span data-term-id=\"58035452\">background checks<\/span>, but New York City does have a \u201cBan the Box\u201d law.<\/p>\n<h3>Workflow<\/h3>\n<p><span data-term-id=\"58035490\">Hiring managers<\/span> may want to use the following <span data-term-id=\"58035495\">workflow<\/span> for <span data-term-id=\"58035491\">FCRA<\/span><span data-term-id=\"58035491\"> compliance<\/span>:<\/p>\n<ol>\n<li>\n<p>Extend a conditional offer of employment.<\/p>\n<\/li>\n<li>\n<p>Get applicant\u2019s written consent to conduct a <span data-term-id=\"58035452\">background check.<\/span><\/p>\n<\/li>\n<li>\n<p>Run report.<\/p>\n<\/li>\n<li>\n<p>If there are negative findings, send a <span data-term-id=\"58035488\">Pre-Adverse Action Letter<\/span> and give the <span data-term-id=\"58035496\">prospective employee<\/span> a <span data-term-id=\"58035494\">copy of the <\/span><span data-term-id=\"58035462\">background check<\/span><span data-term-id=\"58035494\"> report<\/span>.<\/p>\n<\/li>\n<li>\n<p>Wait for applicant to respond by deadline.<\/p>\n<\/li>\n<li>\n<p>If no response or no corrections are made, the employer may send a <span data-term-id=\"58035472\">final Adverse Action Notice.<\/span><\/p>\n<\/li>\n<\/ol>\n<h2>The <span data-term-id=\"58035457\">Adverse Action Process<\/span><\/h2>\n<p>The <span data-term-id=\"58035473\">pre-adverse notice<\/span> allows the applicant to review and correct any <span data-term-id=\"58035463\">inaccuracies<\/span> on their report with the <span data-term-id=\"58035469\">screening company<\/span>. They are given a <span data-term-id=\"58035481\">reasonable amount of time<\/span> (commonly five <span data-term-id=\"58035455\">business days<\/span>) before a final <span data-term-id=\"58035460\">hiring decision<\/span> is made. Here is an example of a <span data-term-id=\"58035451\">pre-adverse action notice<\/span>:<\/p>\n<h2>Sample Template: <span data-term-id=\"58035451\">Pre-Adverse Action Notice<\/span><\/h2>\n<p><strong>Re: Important Information About Your Employment Application<\/strong><\/p>\n<p>Dear [Name of Applicant],<\/p>\n<p>We are writing to inform you that we are considering a decision that may adversely affect your application for employment with [Name of Company]. This decision is based, in whole or in part, on information contained in a consumer background report obtained from the following <span data-term-id=\"58035453\">consumer reporting agency<\/span>:<\/p>\n<p>[Name of <span data-term-id=\"58035453\">Consumer Reporting Agency<\/span>]<\/p>\n<p>[Address]<\/p>\n<p>[<span data-term-id=\"58035474\">Phone Number<\/span>]<\/p>\n<p>Attached, please find:<\/p>\n<ul>\n<li>\n<p>A copy of your <span data-term-id=\"58035462\">background check<\/span><span data-term-id=\"58035462\"> report<\/span><\/p>\n<\/li>\n<li>\n<p>A copy of the <span data-term-id=\"58035471\">Summary of Your Rights<\/span> Under the <span data-term-id=\"58035450\">Fair Credit Reporting Act<\/span><\/p>\n<\/li>\n<\/ul>\n<p>No <span data-term-id=\"58035458\">final decision<\/span> has been made at this time. If you believe any information in the report is inaccurate or incomplete, you have the right to contact the <span data-term-id=\"58035453\">consumer reporting agency<\/span> to dispute the report\u2019s contents.<\/p>\n<p>We will wait at least five (5) <span data-term-id=\"58035455\">business days<\/span> from the date of this notice before making any final <span data-term-id=\"58035459\">employment decision<\/span>.<\/p>\n<p>Sincerely,<\/p>\n<p>[Name\/Title]<\/p>\n<p>[Name of Company]<\/p>\n<p>[<span data-term-id=\"58035468\">Contact Information<\/span>]<\/p>\n<p>The <span data-term-id=\"58035472\">final adverse action notice<\/span> officially informs the applicant that the employment (or promotion) is being denied based on the <span data-term-id=\"58035452\">background check<\/span>\u2019s findings. This notice is only sent after the <span data-term-id=\"58035464\">waiting period<\/span> on the <span data-term-id=\"58035451\">pre-adverse action notice<\/span> has expired and the applicant has not disputed or corrected the information in the <span data-term-id=\"58035476\">employment screening<\/span>. Here is an example of a letter that incorporates the <span data-term-id=\"58035478\">adverse action requirements<\/span>:<\/p>\n<h2>Sample Template: Adverse Action Notice<\/h2>\n<p><strong>Re: Notice of Adverse <span data-term-id=\"58035459\">Employment Decision<\/span><\/strong><\/p>\n<p>Dear [Name of Applicant],<\/p>\n<p>After reviewing your background report and giving you the opportunity to respond, we regret to inform you that [Name of Company] has decided not to [hire\/promote\/retain] you for the position of [Job Title].<\/p>\n<p>This decision was based, in whole or in part, on information contained in a consumer background report furnished by:<\/p>\n<p>[Name of <span data-term-id=\"58035453\">Consumer Reporting Agency<\/span>]<\/p>\n<p>[Address]<\/p>\n<p>[<span data-term-id=\"58035474\">Phone Number<\/span>]<\/p>\n<p>Please note that the agency did not make the <span data-term-id=\"58035459\">employment decision<\/span> and cannot explain why the decision was made. You have the right under the <span data-term-id=\"58035450\">Fair Credit Reporting Act<\/span> to dispute the accuracy or completeness of the report and to obtain an additional <span data-term-id=\"58035466\">free copy<\/span> of the report from the agency if you request it within 60 days.<\/p>\n<p>Sincerely,<\/p>\n<p>[Name\/Title]<\/p>\n<p>[Name of Company]<\/p>\n<p>[<span data-term-id=\"58035468\">Contact Information<\/span>]<\/p>\n<h2>Common Mistakes In <span data-term-id=\"58035452\">Background Checks<\/span><\/h2>\n<p>Employers often make critical compliance errors when conducting <span data-term-id=\"58035452\">background checks<\/span>, many of which can lead to legal liability and employment disputes.<\/p>\n<ul>\n<li>\n<p>Asking questions about criminal history before extending a conditional offer of employment, per EEOC and <span data-term-id=\"58035449\">FCRA<\/span> guidance and especially in states with Ban the Box or <span data-term-id=\"58035479\">Fair Chance<\/span> in hiring laws.<\/p>\n<\/li>\n<li>\n<p>Not getting applicant\u2019s or employee\u2019s written consent for a <span data-term-id=\"58035452\">background check<\/span>.<\/p>\n<\/li>\n<li>\n<p>Not sending a timely <span data-term-id=\"58035451\">Pre-Adverse Action Notice<\/span>.<\/p>\n<\/li>\n<li>\n<p>Not waiting the specified <span data-term-id=\"58035464\">waiting period<\/span> for applicant\u2019s or employee\u2019s response before sending the <span data-term-id=\"58035472\">final Adverse Action Notice<\/span>.<\/p>\n<\/li>\n<\/ul>\n<p>By understanding these common mistakes, employers can comply with federal and state <span data-term-id=\"58035452\">background check<\/span> laws and maintain fair hiring practices.<\/p>\n<h2>Best Practices for Employers and <span data-term-id=\"58035490\">Hiring Managers<\/span><\/h2>\n<ul>\n<li>\n<p>Understand state and <span data-term-id=\"58035465\">local laws<\/span> that affect <span data-term-id=\"58035500\">applicants\u2019 rights<\/span><\/p>\n<\/li>\n<li>\n<p>Develop a uniform <span data-term-id=\"58035452\">background check<\/span> policy<\/p>\n<\/li>\n<li>\n<p>Train team on <span data-term-id=\"58035449\">FCRA<\/span> rules and state and local requirements<\/p>\n<\/li>\n<li>\n<p>Create timing sequence: (1) Conditional Job Offer, (2) Applicant Consent for <span data-term-id=\"58035452\">Background Check<\/span>, (3) <span data-term-id=\"58035452\">Background Check<\/span>, (4) <span data-term-id=\"58035473\">Pre-Adverse Notice<\/span>, (5) <span data-term-id=\"58035464\">Waiting Period<\/span>, and (6) Adverse Notice<\/p>\n<\/li>\n<\/ul>\n<p>You may want to check with an <a href=\"https:\/\/lawyers.findlaw.com\/\" target=\"_blank\" rel=\"noopener\">employment attorney<\/a> for <span data-term-id=\"58035480\">legal advice<\/span> to ensure your disclosures and notifications comply with local, state, and <span data-term-id=\"58035470\">federal laws<\/span>.<\/p>\n<p><em>Disclaimer: The information presented here does not constitute legal advice or representation. It is general and educational in nature, may not reflect all recent legal developments, and may not apply to your unique facts and circumstances. Consider consulting with a qualified attorney if you have legal questions.<\/em><\/p>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        <path 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One important rule is the Fair Credit Reporting Act (FCRA), which requires employers to notify job applicants if they find information in their background report that may affect the hiring decision. Employers must send two [&hellip;]<\/p>\n","protected":false},"author":17713,"featured_media":0,"parent":4663,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"app\/Http\/Controllers\/Templates\/ArticleWithBreadcrumbsController.php","meta":{"_acf_changed":false,"_stopmodifiedupdate":false,"_modified_date":"","_autodraft_ids":[],"_cloudinary_featured_overwrite":false,"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_show_comment_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","footnotes":"","cf_checklist_status":[]},"categories":[2],"tags":[9],"state_laws_tags":[],"flmsa":[],"class_list":["post-395141","page","type-page","status-publish","hentry","category-smallbusiness","tag-aff-llc"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/395141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/users\/17713"}],"replies":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/comments?post=395141"}],"version-history":[{"count":3,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/395141\/revisions"}],"predecessor-version":[{"id":401150,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/395141\/revisions\/401150"}],"up":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/4663"}],"wp:attachment":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/media?parent=395141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/categories?post=395141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/tags?post=395141"},{"taxonomy":"state_laws_tags","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/state_laws_tags?post=395141"},{"taxonomy":"flmsa","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/flmsa?post=395141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}