Template · Offers and pre-employment
Pre-adverse and adverse action notice
In short
An adverse action notice is the letter an employer sends when it decides not to hire, promote or keep someone based on a background check report. Under the FCRA you send two letters: a pre-adverse action notice with the report and a summary of rights, then a final adverse action notice after a waiting period. This page gives you both.
Pre-Adverse and Adverse Action Notices template
Pre-Adverse and Adverse Action Notices
Use Letter 1 first. Send Letter 2 only after the waiting period has passed and you have reviewed anything the individual sent back. Replace every [Placeholder]. Have counsel review both letters for the states and cities where you hire, since several add their own content and timing rules.
Letter 1: Pre-adverse action notice
[Date]
[Candidate Name] [Mailing Address or Email]
Re: Your application for [Job Title], requisition [Req ID]
Dear [Candidate Name],
As part of our hiring process, and with your written authorization, we obtained a consumer report about you from [Consumer Reporting Agency Name]. Based on information in that report, we are considering a decision not to [hire you / continue your employment / promote you] for the position of [Job Title].
No final decision has been made. A copy of the report and a copy of "A Summary of Your Rights Under the Fair Credit Reporting Act" are enclosed.
If you believe any information in the report is inaccurate or incomplete, or if there is anything you would like us to consider, such as context about the circumstances, the time that has passed, or evidence of rehabilitation, please contact [HR Contact Name] at [Phone] or [Email] by [Response Deadline Date]. You may also dispute the accuracy of the report directly with [Consumer Reporting Agency Name] at [CRA Phone] or [CRA Address].
We will review any information you provide before making a final decision.
Sincerely,
[HR Contact Name] [Title], [Company Name] [Company Address]
Enclosures for Letter 1
- Complete copy of the consumer report exactly as received from the agency
- "A Summary of Your Rights Under the Fair Credit Reporting Act" (current CFPB version)
- Any state-required summary of rights or notice (for example, state consumer reporting or fair chance notices)
- If your jurisdiction requires it: a written individualized assessment naming the conviction(s) and the reasons they may be job-related
Letter 2: Final adverse action notice
[Date]
[Candidate Name] [Mailing Address or Email]
Re: Your application for [Job Title], requisition [Req ID]
Dear [Candidate Name],
On [Pre-Adverse Notice Date] we wrote to let you know that we were considering a decision based in part on a consumer report. [We did not receive a response from you by [Response Deadline Date]. / We received and reviewed the information you provided on [Date].] After that review, we have decided not to [hire you / continue your employment / promote you] for the position of [Job Title]. This decision was based in whole or in part on information in the consumer report.
The report was provided by:
[Consumer Reporting Agency Name] [Agency Address] [Agency Phone, toll-free if the agency compiles and maintains files on consumers nationwide]
The consumer reporting agency did not make this decision and cannot explain why it was made.
You have the right to dispute the accuracy or completeness of any information in the report directly with the consumer reporting agency. You also have the right to request a free copy of your report from the agency within 60 days of receiving this notice.
[Include any state or local language required, such as the right to file a complaint with a named state or city agency.]
Sincerely,
[HR Contact Name] [Title], [Company Name]
Record of notice (internal, keep in the applicant file)
- Candidate or employee name
- Position and requisition ID
- Consumer reporting agency
- Date report received
- Specific report item(s) behind the decision
- Individualized assessment completed
- YesNoNot required
- Pre-adverse notice sent
- Delivery method
- EmailMailCourierIn person
- Response deadline given
- Response received and summary
- Final decision
- Proceed with hireAdverse action taken
- Final notice sent
- Decision maker
- HR reviewer signature
How to use this template
- Confirm you have a signed, standalone FCRA disclosure and authorization on file before you order any report; see the background check authorization form.
- When the report comes back with something that may change your decision, have a trained reviewer note exactly which item matters and why it relates to the job.
- Complete any individualized assessment your state or city requires before sending anything to the candidate.
- Send Letter 1 with the full report, the federal summary of rights and any state notices, and record the date and delivery method.
- Wait at least five business days (longer where local law requires) and review anything the candidate sends back in good faith.
- If the decision stands, send Letter 2 and close the requisition record; if new information changes it, proceed with the hire and note why.
- Keep both letters, the report and your notes with the applicant file for the retention period your counsel sets.
When you need an adverse action notice
You need one any time a decision about hiring, promotion, reassignment or retention is based in whole or in part on a consumer report from a background screening company. The Fair Credit Reporting Act (FCRA) treats criminal record checks, motor vehicle records, employment and education verifications and credit reports run by a third party as consumer reports. If you ran the check in-house by calling a former employer yourself, the FCRA notice rules generally do not apply, though state law might.
The trigger is the report influencing the decision, not the report being bad. If a driver candidate's MVR shows two moving violations and that is part of why you pass, you send the notices, even if you also had concerns from the interview. When in doubt, send them. The cost of two letters is small; the cost of an FCRA class action over skipped notices is not. For the full legal background, see our definition of adverse action and the Fair Credit Reporting Act.
What each letter must contain
The pre-adverse action letter exists to give the person a real chance to fix errors before you decide. Under section 604(b)(3) of the FCRA it must include a copy of the report and the CFPB's "A Summary of Your Rights Under the Fair Credit Reporting Act." Screening reports mix up people with common names, list dismissed charges and attach records that belong to someone else more often than most hiring teams expect, so the waiting period matters.
The final adverse action letter is defined by section 615(a). It must give the name, address and phone number of the consumer reporting agency (toll-free if the agency operates nationwide), a statement that the agency did not make the decision and cannot explain it, and notice of the right to dispute the report with the agency and to get a free copy within 60 days. The template above includes all of these.
The statute does not say how long to wait between the two letters. Five business days is the common practice, and the FTC staff has described that as reasonable. Some fair chance laws set their own minimum, so check the rules where the job is located.
State and city fair chance rules
Many jurisdictions layer extra steps on top of the FCRA when the issue is a criminal record. The California Fair Chance Act requires a written individualized assessment, a preliminary notice that names the disqualifying conviction and gives at least five business days to respond, and a final notice that explains any review process and the right to file a complaint with the state Civil Rights Department. New York City's Fair Chance Act requires a written analysis under Article 23-A of the state Correction Law and a fair chance notice before withdrawing a conditional offer. Philadelphia, Los Angeles, Illinois and others have their own versions.
The EEOC's 2012 enforcement guidance on arrest and conviction records points the same way at the federal level: consider the nature of the offense, the time elapsed and the nature of the job, and give the person a chance to show why the record should not exclude them. Even where no fair chance law applies, that three-part review is good practice. Rules vary by state and city, and this page is informational, not legal advice.
Mistakes that cause FCRA claims
- Withdrawing the offer in the same email as the pre-adverse letter. The first letter must say no decision has been made, and the hiring team has to act like it.
- Telling the hiring manager the candidate is out before the waiting period ends. Managers then call the candidate, which turns the notice into a formality.
- Sending the report summary instead of the full report.
- Using an outdated version of the summary of rights. The CFPB revises it, so pull the current version from your screening vendor.
- Not documenting delivery. If the candidate says they never received the letter, you want a timestamp.
- Treating a rescinded offer as anything other than adverse action. Pair this process with your offer withdrawal letter only after the final notice, not before.
Running the process at volume
A warehouse or contact center hiring 200 people a month might send pre-adverse letters to 3 to 8 percent of candidates who reach the background check stage. At that scale the process needs an owner, a queue and a calendar. Most teams have the screening vendor generate and send Letter 1 automatically on HR's instruction, with HR doing the individualized review first and the vendor holding Letter 2 until HR releases it after the waiting period.
Keep the candidate-facing tone plain and respectful. Many people who get a pre-adverse letter have a record that is old or irrelevant to the role, and a good share will be hired once they respond. For the email that goes alongside the formal letters, use our adverse action email and the pre-adverse action email. Before any of this, make sure your background check authorization form is a standalone disclosure, since an invalid authorization taints everything that follows.
Frequently asked questions
What is the difference between a pre-adverse action letter and an adverse action letter?
The pre-adverse action letter comes first and says you are considering a decision based on a background report. It includes the report and a summary of rights. The adverse action letter comes after a waiting period and tells the person the decision is final, with the agency's contact details and their dispute rights.
How long do you have to wait between pre-adverse and adverse action?
The FCRA does not set a number. Five business days is the widely used practice. Some state and city fair chance laws require at least five business days and extra time if the person says they are gathering evidence.
Is an FCRA adverse action notice required if we do the background check ourselves?
Generally no, because the FCRA covers reports from consumer reporting agencies. If you call references or check public records directly, federal notice rules usually do not apply, but some state laws and fair chance ordinances still do.
Can the adverse action letter be sent by email?
Yes. The FCRA allows oral, written or electronic notice, and email is common. Written notice is the safer choice because you can prove what you sent and when.
Do I have to tell the candidate exactly why they were rejected?
The FCRA itself does not require you to explain your reasoning in the final letter. Several fair chance laws do require you to name the conviction and explain why it is job-related, so check local rules before using a generic letter.
Does adverse action apply to current employees?
Yes. If you rescreen employees, for example for a promotion or a client contract, and a report influences a decision to deny the promotion, reassign or terminate, the same two-step notice process applies.