Are There Contractor Background Check Requirements?

Background Screening | January 7, 2022

Are there contractor background check requirements that your organization must follow? Keep reading to learn more about the contractor screening and how PlusOne Solutions can help. 

In most industries, when you decide to screen your service contractors – those individuals that will be used by your organization to deliver, service and install your product – aside from the compliance related to conducting the background check, there are no contractor background check requirements, per se that must be met aside. 

The reference to compliance includes the federal – Fair Credit Reporting Act and Equal Employment Opportunity Commission – as well as state and local laws that may govern the access and use of information related to contractors. If the contractor is doing work on federal contracts, there may be requirements such as a security clearance, but the focus of this piece will be on those that are not working on such engagements.

Managing the risk for your organization includes screening this group of individuals and as the use of contractors increases, so too does the importance of screening them. Whatever requirements you set, the process must be consistent, relevant to the role the contractor will hold and is necessary to the business.

Is Screening Contractors Different From Screening Employees?

Generally, the type of screening for contractors will differ from that done on an employee because the focus with contractors is on risk mitigation versus an HR fit. That means information such as criminal record searches, driving history, sex offender records, and identity verification will be much more relevant to your organization than education or employment verification, which would typically remain the responsibility of their direct employer, if applicable.

Any contractor background check requirements should include the aforementioned so your organization can determine if the individual contractor may pose a risk to your organization, consumers, or others they work with.

This group of workers is an integral component of the overall strategy for many organizations and the reasons for screening them include:

• Reducing the potential for claims resulting from litigation;
• Creating and maintaining a safe work environment;
• Protecting your reputation and brand;
• Creates a common and consistent approach across individuals who represent your organization.

Now background checks aren’t the only thing to consider with contractors, it is also important to verify their Tax Identification Number is accurate, that they hold the required insurance to protect your organization, have the skills and licenses needed to perform the work and that they are badged and properly identified. 

Together these services will create a more comprehensive and robust contractor compliance program and provide a greater level of risk mitigation than just background checking contractors.

A closing thought…make sure subcontractors are also included in your risk management plan. They may work for the contractor you screened and it is important you are aware of their suitability as well. For more information on our contractor screening services, fill out our online contact form 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.

About PlusOne Solutions

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.