Preadverse Adverse Action CI Webinar Series February 2014

Webinar Series:
Preadverse/Adverse
Action
CI Webinar Series 01/23/2014

Webinar Series: Pre-Adverse/Adverse Action
Commercial Investigations LLC
www.commercialinvestigationsllc.com
 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
 courtneycaola@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 Form
Adverse Form

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 The job offer was then rescinded after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 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

 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

 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.

 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.

 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.”

 “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. “

 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.

 Again, please make copies of
these form
 Put theses printouts in a
folder with the Preadverse
Action Notice form
documents

 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.

Presented by: Courtney Caola,
Melissa Ramsey, & Taylor Ryan
(800) 284-0906
facebook.com/commercialinvestigationsllc
twitter.com/CI_LLC
linkedin.com/company/commercial-investigations-llc
info@commercialinvestigationsllc.com
http://pinterest.com/proactivetruth/

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.

 http://www.consumer.ftc.gov/articles/0157-
employment-background-checks

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