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Federal Court: FCRA Does Not Apply to Independent Contractor Relationships

Here is one more potential advantage of using independent contractors rather than employers that so far has flown below the radar screen. According to the a Wisconsin federal district court in the case of Lamson vs. EMS Energy Marketing Service, Inc. the Fair Credit Reporting Act’s disclosure obligations do not apply to independent contractor relationships. Because EMS did not obtain the consumer report to evaluate Lamson for a position as an employee of EMS, the court granted EMS’s summary judgment motion.

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