In the case of Smith v. Mutual of Omaha Insurance Company, a court in the United States District Court for the Southern District of Iowa, ruled that the protections applicable when consumer reports are obtained for “employment purposes” under the Fair Credit Reporting Act (FCRA) do not extend to reports obtained for independent contractors. In the case, the plaintiff alleged he applied to contract with the business as an insurance salesperson, but was not hired due to a falsely reported felony on his background check. Claiming he was not provided with the statutorily-mandated prior notice, Mutual of Omaha moved to dismiss the claim on the basis that Smith was only applying to work as a contractor, stating that the pre-adverse action notice requirement did not apply.

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