Contingent hiring can expose both employers and staffing suppliers to liability under the Fair Credit Reporting Act (FCRA) when background checks or screening tools are used. The article explains that organizations relying on third parties for hiring decisions may still be considered “users” of consumer reports, making them responsible for compliance. As screening technologies evolve, including AI-driven tools, both buyers and suppliers must ensure proper disclosures, consent, and dispute processes to avoid legal and regulatory risk.
