An adverse action occurs when an employer behaves in a way that puts an individual or a group of people at a disadvantage as far as equal employment opportunities go. For example, take an employee who files a lawsuit against his or her employer. If the employer retaliates by refusing to move ahead with a planned promotion for the employee, that behavior is likely an adverse action. In addition, federal courts in recent years have heightened their scrutiny of employer adverse actions under the Fair Credit Reporting Act. Under this act, employers are required to follow specific procedures such as pre-adverse action notices in situations such as using a background check or credit report to deny employment to a person based the findings of the report.
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