What is Adverse Action in a Background Check?

In US background-check law, adverse action means a hiring decision against a candidate based in whole or in part on a consumer report. Under the FCRA the employer gives a pre-adverse action notice with a copy of the report, a chance to respond and then a final notice.

Example

An employer plans to rescind an offer because of a report; it must first send the notice and wait.

Related terms and guides

• FCRA
• Background check

Sources

• FTC, Background Checks: What Employers Need to Know, https://www.ftc.gov/business-guidance/resources/background-checks-what-employers-need-know, live official page, linked for readers; link checked 2026-10-30, no figure is taken from it

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.