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A clearance letter is a letter that states that the company in question is in good standing.

Usually, this related to insurance or union related issues. For example, if you are trying to hire a contracting company, you might want to request a letter of clearance stating they are up to date on all their union dues and workers compensation issues. This is just another way to make sure that they are doing everything within regulations and are a responsible member of the business community.

Sample letter of clearance Ty J. May 4471 Kimberly Way Grand Rapids, MI 49503

Dear Mr. May We are just responding to your request for a letter of clearance regarding Clearwater Contracting, We are pleased that you chose to hire a local contractor to complete the work on your house. Our records state that they are up to date on all their union issues, and workers compensation has all been paid. They are an upstanding member of the local business community, and we have no issues with them at the current time. There have not been any reported issues with Clearwater Contracting in the past either. Thank you for your concern. Sincerely, Local 501 Union

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