Background checks are a critical part of the hiring process, helping New York small businesses make informed decisions and protect their operations. But what happens when adverse findings arise? Handling this information properly is key to staying compliant with state and federal laws while treating candidates fairly. Here’s a step-by-step guide to help you manage adverse findings with confidence. 

Step 1: Review the Findings Carefully 

Start by thoroughly examining the background check results. Focus on details relevant to the job position, such as criminal records, employment verification, or driving history. Keep the evaluation focused on qualifications and potential risks directly tied to job performance. 

For example, a driving-related offense might be a red flag for delivery drivers but irrelevant for office-based roles. Taking a job-relevant approach reduces discrimination risks and supports compliance with New York’s hiring laws. 

Step 2: Follow Legal Requirements 

New York small businesses must adhere to federal and state-specific laws when handling adverse findings: 

• Fair Credit Reporting Act (FCRA): Employers must notify candidates about adverse findings before making hiring decisions. Provide them with: 

1. A Pre-Adverse Action Notice explaining the findings.
2. A copy of the background check report.
3. A Summary of Rights under the FCRA. 

• New York State Fair Employment Laws: Employers must avoid discrimination based on criminal history and instead assess candidates individually. 

• NYC Fair Chance Act (if applicable): Businesses in New York City must delay criminal history inquiries until after a conditional job offer and provide candidates with an opportunity to respond to adverse findings. 

Step 3: Give Candidates the Opportunity to Respond 

Allow candidates to review and dispute inaccuracies in their reports. The FCRA requires employers to give a reasonable time (typically five business days) for disputes before taking final action. 

This process demonstrates fairness and ensures decisions are based on accurate information. 

Step 4: Make an Informed Decision 

If the adverse findings are accurate, assess whether they directly impact the candidate’s ability to perform the job. Consider: 

• The severity of the offense. 

• How long ago the incident occurred. 

• Evidence of rehabilitation or positive references. 

Document your decision-making process to show compliance and fairness if challenged later. 

Step 5: Issue Final Notifications 

If you decide not to hire the candidate, send a Post-Adverse Action Notice explaining the decision. Include: 

• A statement that the decision was based on the background check. 

• The CRA’s contact information for further disputes. 

• Confirmation that the CRA did not make the hiring decision. 

Simplify Compliance with Metrodata Services 

Handling adverse findings in background checks can be complex, but Metrodata Services is here to help. We provide New York small businesses with reliable, FCRA-compliant background screening solutions and expert guidance on navigating challenging hiring scenarios. 

Contact Metrodata Services today to streamline your hiring process and protect your business with confidence. 

Request a No-Obligation Background Screening Services Consultation