AI Hiring Glossary

Adverse Action Notice

Adverse Action Notification

A notification provided to a candidate or employee when a negative employment decision is made based wholly or partially on information obtained through automated means. The notice typically must explain the decision, the data used, and appeal rights.

Why This Matters for Employers

Multiple laws require adverse action notices when AI influences negative decisions. Colorado AI Act requires statement of reasons, opportunity to correct data, and human review appeal rights.

Related Laws & Regulations

Colorado AI Act
Colorado
FCRA
Illinois AIVI
IllinoisIllinois

Examples in Practice

Rejection notification explaining AI was used in screening
Notice of right to request human review of AI decision
Explanation of factors that contributed to automated assessment

How EmployArmor Helps

Understanding Adverse Action Notice is just the first step. EmployArmor helps you implement compliance for all AI hiring regulations.

Compliance Assessment

Find out which laws apply to your AI hiring tools and what you need to do to comply.

Documentation Templates

Get ready-to-use templates for impact assessments, notifications, and audit preparation.