Background Checks for Independent Contractors: Guidelines and Legal Considerations

Question: We are about to hire an independent contractor but want to run a background check before hiring him. Can we run a background check on an independent contractor and make the contract contingent on the results?

Answer: Yes, you can run a background check on an independent contractor, especially if the contractor will have access to sensitive materials or if the nature of the work requires a clean background check. You can also make the contract contingent on the results of this background check.

Additionally, it is important to include language in the contract regarding the confidentiality of information and non-solicitation. However, the most critical component of your contract should be to ensure it clearly states that the agreement does not establish an employee-employer relationship.

It's crucial to ensure that you are classifying the worker correctly. Many independent contractors might be considered employees if the Department of Labor (DOL) were to investigate the work relationship. To verify proper classification, refer to the DOL’s fact sheet on Independent Contractor classifications here.