A Note from ClearChecks on HireRight Acquisition & New BackgroundChecks.com
Federal Court Rule Raises Questions about the FCRA in the Gig Economy
June 25th, 2019
How does the Fair Credit Reporting Act (FCRA) apply to independent contractor roles? A recent federal court ruling out of the Southern District of Iowa may shed some light on this question.
Per a detailed report from Mondaq, Smith alleged that Mutual of Omaha Insurance did not
FCRA-related lawsuitsto double-check their FCRA compliancegig economy
to conduct the background check
"in accordance with the written instructions" of the applicant).
Businesses hiring contractors should follow the FCRA to the letter regardless of whether the position that they are filling is a contract “gig” or an employment “job.” Providing a candidate with a copy of his or her background check report before rejecting the candidate for a contracting role is not a huge inconvenience, and it may save your business from a convoluted and expensive legal battle.
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