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COMMERCIAL INVESTIGATIONS LLC
When you decide to terminate, not to hire, or not to promote someone due to information contained in their background investigation
report you are required to provide notice to the applicant. Actually, you are required to provide two notices (pre-adverse and adverse),
the background investigation report, the FCRA Notice of Rights and, if you are a NY employer, Article 23-A.
This Compliance Insight will provide our recommended step-by-step process for complying with the notice requirements. It is advisable
that you include your process for compliance as part of your background investigations policy. It is recommended that you follow the
same procedures regardless of position or status (e.g. temp vs. full-time hire).
These requirements are specific to background investigations reports that are prepared by a third party Consumer Reporting Agency,
such as Commercial Investigations LLC. However, if you compile your own report there is nothing prohibiting you from also following
the adverse action requirements.
The notice requirements are a two step process:
STEP 1: Preadverse Action
Before you take the adverse action (e.g. terminate, not hire, not promote) you must give the preadverse action notice. CI provides
compliant forms for its clients to utilize.
This part of the process involves four documents:
1. The Preadverse Action Notice Form (fill out the top portion about the company);
2. A copy of the applicant’s complete background investigation report;
3. A copy of the FCRA Summary of Rights;
4. A copy of New York Correction Law Article 23-A (if applicable).
Make copies of these documents for your files. We recommend creating and storing these copies in a folder noted, Adverse Action.
You should retain the information for seven years.
Mail the four documents via signature confirmation. This will acknowledge that the applicant received the Preadverse documents.
Include the confirmation details in your Adverse Action folder with the Preadverse document copies.
STEP 2: Adverse Action
Your next step comes approximately five to seven business days later. At that time you need to follow up with the Adverse Action
Notice Form (fill out the top portion about the company).
Again, make a copy and put it with the Preadverse documents. Mail the form via signature confirmation. This will acknowledge that the
subject received the Adverse Action Notice form. Include the confirmation details in your Adverse Action folder with the Preadverse
documentation.
For assistance with the Adverse Action compliance requirements contact a CI representative. Do not hesitate to contact us every time
you must comply, most clients do. We are also available to review your policy to make sure these requirements and your procedures
are properly documented.
report you are required to provide notice to the applicant. Actually, you are required to provide two notices (pre-adverse and adverse),
the background investigation report, the FCRA Notice of Rights and, if you are a NY employer, Article 23-A.
This Compliance Insight will provide our recommended step-by-step process for complying with the notice requirements. It is advisable
that you include your process for compliance as part of your background investigations policy. It is recommended that you follow the
same procedures regardless of position or status (e.g. temp vs. full-time hire).
These requirements are specific to background investigations reports that are prepared by a third party Consumer Reporting Agency,
such as Commercial Investigations LLC. However, if you compile your own report there is nothing prohibiting you from also following
the adverse action requirements.
The notice requirements are a two step process:
STEP 1: Preadverse Action
Before you take the adverse action (e.g. terminate, not hire, not promote) you must give the preadverse action notice. CI provides
compliant forms for its clients to utilize.
This part of the process involves four documents:
1. The Preadverse Action Notice Form (fill out the top portion about the company);
2. A copy of the applicant’s complete background investigation report;
3. A copy of the FCRA Summary of Rights;
4. A copy of New York Correction Law Article 23-A (if applicable).
Make copies of these documents for your files. We recommend creating and storing these copies in a folder noted, Adverse Action.
You should retain the information for seven years.
Mail the four documents via signature confirmation. This will acknowledge that the applicant received the Preadverse documents.
Include the confirmation details in your Adverse Action folder with the Preadverse document copies.
STEP 2: Adverse Action
Your next step comes approximately five to seven business days later. At that time you need to follow up with the Adverse Action
Notice Form (fill out the top portion about the company).
Again, make a copy and put it with the Preadverse documents. Mail the form via signature confirmation. This will acknowledge that the
subject received the Adverse Action Notice form. Include the confirmation details in your Adverse Action folder with the Preadverse
documentation.
For assistance with the Adverse Action compliance requirements contact a CI representative. Do not hesitate to contact us every time
you must comply, most clients do. We are also available to review your policy to make sure these requirements and your procedures
are properly documented.
News Release
FOR IMMEDIATE RELEASE
FOR IMMEDIATE RELEASE
Contact:
Michelle Pyan, Commercial Investigations LLC President
518-271-7546
michellepyan@commercialinvestigationsllc.com
Michelle Pyan, Commercial Investigations LLC President
518-271-7546
michellepyan@commercialinvestigationsllc.com
| COMPLIANCE INSIGHT: ADVERSE ACTION |
COMMERCIAL INVESTIGATIONS LLC (CI), a full service licensed private investigative agency, offers thorough
and affordable employment BACKGROUND INVESTIGATIONS. CI provides accurate, timely, cost effective and
fully compliant reports supported by high standards of customer service. CI also offers consulting services to
assist organizations with reviewing and auditing their BACKGROUND INVESTIGATIONS processes for compliance,
effectiveness and efficiency. CI provides the PROACTIVE TRUTHTM regarding applicants, thereby reducing
turnover and limiting exposure to civil liability.
and affordable employment BACKGROUND INVESTIGATIONS. CI provides accurate, timely, cost effective and
fully compliant reports supported by high standards of customer service. CI also offers consulting services to
assist organizations with reviewing and auditing their BACKGROUND INVESTIGATIONS processes for compliance,
effectiveness and efficiency. CI provides the PROACTIVE TRUTHTM regarding applicants, thereby reducing
turnover and limiting exposure to civil liability.
DATE: March 2009