Background checks give companies some protection against liability and risk related to staffing. You can use them to learn more about a person’s credit history, if they have a criminal record, information about their driving record, education and employment history, and character. Obviously, employers want to screen everyone who does any kind of work for them, including temps and independent contractors. A service like CheckPeople can pull up a wealth of background information.
The Answer is Yes
A company is allowed to run a background check on anyone who is doing any work for them. This includes independent contractors and other conditional employees. Federal and state law mandates employers who work with minors, older people, or the disabled to run background checks on all employees who have contact with their customers.
Moreover, some industries that require security or government clearances have to screen all employees.
Not only can one screen their contingent workforce, but they should. This helps ensure consistency within the organization. Many companies labor under the misconception of being protected because the contractor’s sponsoring organization has already checked the contractor. It may have, but the definition of a background check is open to interpretation. A quick database inquiry or a single reference check suffices for some companies.
Key Points of Screening an Independent Contractor
There are a few basic principles to consider in the context of screening contingent workers. One of them is to define screening requirements depending on the individual’s role. Your screening protocols for independent contractors and full-time employees should be identical.
If you don’t deal with hiring contingent workers directly, make your third-party provider fulfill specific contractual obligations to make sure they screen them at the level mandated.
You need to make sure contractors fulfill the same requirements as full-time staff because they may have the same access to systems, customers, employees, and facilities. There is an amplified need for this because a company and its executives are far less familiar with its contractors than their regular employees. This risk extenuation level is essential in terms of managing the company’s exposure to the behavior of contractors.
Apart from extenuating risk, some companies employ contractors with the intention to hire them on a permanent basis at one point. Your company has no line of sight to contractor screening if you don’t perform a background check at all, or you outsource the process to the agency that sent the contractor.
Keep Your Environment Safe
Failure to check your whole workforce exposes companies to financial, physical, and other workplace risks, such as workplace violence, property damage, and theft. Implementing FCRA-compliant background checks minimizes these risks, leading to a safer workplace. It’s not a good idea to perform a screening after you’ve hired the contractor. Information disqualifying them from employment might emerge. All the time spent in assessing and training the individual as a contractor is lost in addition to risk exposure. Your company will now have to start over with someone new. The only good thing about this situation is that you won’t make the same mistake again.
Uphold Your Company’s Reputation
Your clients don’t make a difference between your staff with long-term employment agreements and your independent contractors. When a contingent worker comes to take measures for new flooring, to install some equipment, or to pick up a delivery, they represent your company and your brand. Your company will receive a complaint immediately if the contractor inflicts material or personal damage to a customer. By making sure all your employees undergo the same screening, you’re protecting your company and your brand.
Minimize the Likelihood of Litigation
A dissatisfied customer might assert a legal claim against you for the same reason that they’d blame your company for damage. Keep in mind they might not pursue litigation against your contractor. The notion of an independent contractor is constantly changing. Gig workers are tantamount to actual employees under a recent California Supreme Court ruling.