Does the FCRA Apply to Background Checks for Independent Contractors?

Although recent court decisions have held that the Fair Credit Reporting Act (FCRA) applies to the employment background checks of independent contractors, the Federal Trade Commission (FTC) insists that both employees and nontraditional workers are protected under the FCRA. The U.S. District Court for the Northern District of Georgia recently ruled that screening independent contractors does not trigger the requirements for a background check for “employment purposes” under the law. According to Tyler Browne, lead product counsel at Checkr, regardless of employment classification, some form of consent is still required. As more courts continue to rule that employers do not have to comply with all employment-purpose requirements when screening independent contractors, HR professionals should consider a business’s workforce composition and how it balances competing interests when developing a screening plan.

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Posted Under: Legal Issues

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