Adverse Action Laws: State by State

What Are Adverse Action Laws?

Adverse action refers to steps an employer takes after deciding not to hire an applicant, promote an employee, or retain a worker based on information obtained from a background check. This process is regulated under the Fair Credit Reporting Act (FCRA) and includes specific requirements to promote transparency and fairness in employment decisions. In addition to federal regulations, various states and localities have their own adverse action laws.

These laws are designed to protect individuals from unfair treatment, particularly in cases where background checks may include inaccurate, incomplete, or outdated information. Adverse action regulations help ensure that applicants and employees are notified about decisions that affect their employment opportunities and are given the chance to review and dispute the information on their background reports.

It’s important to note that adverse action laws, like all laws, are subject to change over time. The information below is a courtesy resource created in February 2025 and may include details that are inaccurate or outdated. For the most up-to-date information on adverse action laws in your area, always check with your city, county, and state authorities. If you have any questions about adverse action laws or compliance in your region, feel free to contact us!