Does the FCRA Apply to Background Checks for Independent Contractors?

The U.S. District Court for the Northern District of Georgia has ruled that screening independent contractors doesn’t trigger the requirements for a background check for “employment purposes” under the law. But, according to Alonzo Martinez, associate counsel for compliance at HireRight, the recent decisions don’t align with the Federal Trade Commission’s (FTC) guidance on the issue. Employers are left to wonder whether they should continue to screen independent contractors as “employees” due to fear of a misclassification claim. Decisions should be made based upon an employer’s workforce composition and how it balances competing interests. Martinez suggests the creation of a separate screening policy for independent contractors in which HR provides disclosures and attains authorization from the worker under a nonemployment permissible purpose.

 

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Posted Under: Legal Issues, US

Post By Ken Shafton (300 Posts)