Webinar Series:Preadverse/Adverse
ActionCI Webinar Series 01/23/2014
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
About Us Commercial Investigations LLC (CI) is a certified woman
owned enterprise and NYS licensed private investigative agency
Our vision is to be the most innovative and educational background investigations partner.
Courtney Caola-Client Services Specialist Joined Commercial Investigations LLC in December
2013 6 years working as an Investigator with the Federal
Government conducting background investigations. Total of 12 years working with government agencies in
various roles. Contact:
800-284-0906 Ext. 214 [email protected]
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
Presenters: Taylor Ryan & Melissa Ramsey
Perplexing Situation: What can happen when you don’t
follow the Pre-Adverse/Adverse Action procedures or keep your forms updated.
Action procedures:Preadverse FormAdverse Form
Preadverse /AdverseAction
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
1. In October 2011 a law suit was filed against K-mart
2. The plaintiff was offered the job at K-mart
3. The job offer was then rescinded after he failed a background check
K-Mart Settles$3 Million
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
K-mart provided the plaintiff with a copy of the report and the statement of consumer rights
The rights however where from the FTC and were released in 1997
These rights never stated that the individual had the right to dispute the findings
Plaintiff received inaccurate information
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
K-mart and its parent company , Sears Holding Corp., denied any wrong doing
They agreed to the $3 million class action lawsuit settlement
The settlement included more than 64,506 class members, all of whom alleged they were given insufficient opportunity to dispute
In the End
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
This class action Law suit should be a warning to all companies about the necessity of not only using Preadverse/adverse action but also the importance of keeping the documents you use up to date.
All the documents made available to you by Commercial Investigations, LLC. Are all up to date and FCRA compliant.
The Lesson…
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
If you rely on a Background Investigations Report for an “adverse action” – denying a job applicant, reassigning an employee, terminating an employee, or denying a promotion to an employee – be aware that before you take the adverse action you must give the individual a Preadverse Action Disclosure.
Preadverse /Adverse Action
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
One of the consumer protection agencies that enforces the Fair Credit Report Act (FCRA) is the Federal Trade Commission (FTC)
The FCRA is law that protects the privacy and accuracy of the information in a credit report
“The FCRA spells out the rights as a job applicant and an employer’s responsibilities when using credit reports and other background information to assess the application.”
Federal Trade Commission
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
“If the subject does not get the job because of information based on the report, the employer has some legal obligations” – FTC
“There are legal consequences for employers who don’t comply with the FCRA, whether they fail to get an applicant’s okay before getting a copy of their credit or other background report, fail to provide the appropriate disclosures in a timely way, or fail to provide adverse action notices to unsuccessful job applicants. “
Federal Trade Commission
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
This part of the process involves four documents:
1. The Preadverse Action Notice Form
2. A copy of the subject’s FCRA Summary of Rights
3. New York Correction Law Article 23-A (if applicable)
4. A copy of the completed background investigation report.
Please make copies of these documents. We recommend creating and storing these copies in a folder noted, Adverse Action.
You are required to hold onto the information for seven years.
The steps to follow when sending out the Preadverse Action
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
Step 1:
You first need to sign into Commercial Investigations LLC website
www.commercialinvestigationsllc.com/client
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
Step 2:
Accept the CIware Certification of Use
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
Step 3:
Select the Report of the Applicant You Plan to Not Hire Due to Their Background Check
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
Step 4:
Open the Completed Report by Clicking on the Subject’s Report Number
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
Step 5:
As you can see we have the Completed Report already. Print out a copy for the subject and yourself.
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
Step 6:
Next, in the Drop Down by “Select Report:” You Should Now Select PreAdverse Action Letter
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
Step 7:
Print Out a Copy of the Preadverse Action Letter for the Subject and for Yourself
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
Step 8:
Print out a Copy of the NY Correction Law Article 23-A
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
Step 9:
We also have these Forms on our Website
www.commercialinvestigationsllc.com/client
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
Step 10:
Your Next Step is in 5-7 Business Days, go back to the Drop Down and Follow Up with the Adverse Action Notice Form
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
Again, please make copies of these form
Put theses printouts in a folder with the Preadverse Action Notice form documents
Reminder:
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
You need to mail these forms Priority mail shipping.
You will receive a tracking number and an estimated time of when the package will arrive to the subject when you get your receipt from the post office.
When the forms are delivered, go on to the USPS website and type in your tracking number and print out the confirmation that the forms were delivered and file this away with the rest of the PreAdverse/Adverse forms.
You need to do this for both the PreAdverse and the Adverse forms.
When sending out the PreAdverse/Adverse Forms
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
Wrap Up
Presented by: Courtney Caola, Melissa Ramsey, & Taylor Ryan(800) 284-0906www.commercialinvestigationsllc.com
facebook.com/commercialinvestigationsllc
twitter.com/CI_LLC
linkedin.com/company/commercial-investigations-llc
Webinar Series: Pre-Adverse/Adverse
Action
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The information provided in this presentation does not constitute legal or accounting advice. It is for information and discussion purposes only.
This presentation may not be reproduced without the written consent of the author.
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLCwww.commercialinvestigationsllc.com
http://www.consumer.ftc.gov/articles/0157-employment-background-checksCiting: