Industry Terms | Resources

Adverse Action: a denial of employment or any other decision for employment purposes that adversely affects any current or prospective employee.

Adverse Action Notice: a required notice to the current or prospective employee when any adverse action is taken again them based in whole or in part due to the background check. It must also state that the credit reporting agency took no part in the decision.

Background Check: this is general term used for all types of official or commercial records that look into a person’s history. It can refer to credit checks, criminal records, educational history, credentials, driving records, employment verifications and reference checks as well as other sources of information.

Consent Form: a form signed by the prospective employee giving the company permission to conduct a background check. By law this form must be a separate document from the employment application.

Criminal Record: a list of crimes for which an accused person has been previously convicted; the record is retrieved from the courts in a county, or state or federal district or internationally.

Database Report: a collection of data usually consisting of criminal, sex offender and some traffic compiled in a computer for instant and inexpensive access. Some database records may be updated as infrequently as quarterly or annually.

Pre-Adverse Action Notice: a required notice to the current or prospective employee prior to taking any adverse action. The notice should include a copy of the background check with classified information excluded and with sources of information included.