A great deal of risk comes from utilizing a network of independent contractors to provide complete and competent skilled services. One way to mitigate that risk is to conduct a comprehensive background check for independent contractors affiliated with your organization.
In this context, independent contractors are individuals who perform specific skilled tasks for an organization, such as repair, delivery, and installation services. They are usually part of the company’s service network as components of its service model. Even if these individuals are not managed or supervised by you, you can mitigate various risks by conducting a background check on each independent contractor.
In a Gallup study conducted in 2020, 14% of workers reported being an independent contractor as their primary means of work. As the market continues to grow for these types of jobs, so do organizations’ measures to ensure compliance and due diligence to protect their brand and company. The following five practices can help your business reduce legal risks and implement decisive compliance factors within your organization.
Ensure that you use critical judgment with each contractor from the advent of the screening process. Screening each application carefully and thoroughly upfront can give you a more solid understanding of whether they should be a part of your contractor network.
A background check for independent contractors should be simple and lead applicants through screening procedures to streamline the application process.
The Professional Background Screening Association (PBSA) has developed the Background Screening Agency Accreditation Program (BSAAP) with high professional standards for background screening companies.
Additionally, a background check for independent contractors should follow the Fair Credit Reporting Act (FCRA). In 1970, the FCRA was enacted to regulate the collection, dissemination, and use of consumer information, which includes background check report information. In the FCRA, a screening partner, called a consumer reporting agency, and your organization, called an end-user, must follow a strict process. Specific requirements must be met to ensure compliance during the screening, which can cause operational and financial liabilities if not satisfied.
Employers are prohibited from asking about criminal histories on job applications in some states, counties, and municipalities where ban-the-box laws exist. These laws intend to reduce the stigma of incarceration. Companies in these locations are not permitted to ask for references until later in the hiring process.
Additionally, some states prohibit credit reports from being used to make hiring decisions. In addition, others have precise rules on how employers can obtain and use credit reports.
Companies that use a network of contractors to deliver repair or support products or services for their organization can benefit from a recurring background check for independent contractors. Companies can use continuous criminal monitoring to support their compliance standards and safeguard their brand from risk exposure.
At PlusOne Solutions, we strive to make contractor compliance easy for your organization. Our services are tailored to meet the needs of companies that work with contractor networks. For more information on background checks, contact us today.
Contents are provided for information purposes only and should not be construed as legal advice. Users are reminded to seek legal counsel with respect to their obligations and use of PlusOne Solutions services.
PlusOne Solutions has been an industry leader in the risk management field by specializing in compliance programs that meet the complex challenges of geographically dispersed contractors, vendors, and employee networks. PlusOne Solutions protects companies from possible financial, legal, and reputational risks associated with contractor and vendor relationships while creating safer work environments. To learn more, visit https://www.PlusOneSolutions.net.To receive these updates directly in your email inbox, sign up for the newsletter. Questions or comments? We want to hear from you.
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