Ruling Raises Important Considerations For Independent Contractor Background Screening

A federal court's recent decision demonstrates the value in reviewing all documents related to the independent contractor background screening process to attempt to solidify potential defenses to expansive class-action claims. As previously discussed, background screening laws and claims—individual and class action—continue to rise.¹ Class actions under the Fair Credit Reporting Act (FCRA) often seek statutory damages of $100-$1,000 for every person screened with allegedly non-compliant forms or procedures. These claims are often hyper-technical, meaning that this is one area of law where the old maxim "substance over form" does not necessarily apply. As the use of contingent workers and independent contractors continues to rise, the latest decision presents an opportunity to review current forms and processes and to potentially make adjustments before a lawsuit arises.