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Background Checks for Seasonal and Gig Workers

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It’s busy season for those in the staffing industry, and that means many organizations are using seasonal workers. If you’re among the employers staffing up for peak times of the year, do you run background checks on these individuals? And what about so-called “gig economy” labor, which now comprises over one-third of the U.S. workforce?

The nature of work continues to change across America to include alternative arrangements, from disparate independent contracting relationships, telecommuting employees who rarely, if ever, set foot on premises, temporary and work-to-perm hires, and outsourced labor of various sorts. As a result, the decisions regarding background investigations are becoming more complicated. Here’s what the experts are saying.

Should You Request a Background Screen?

Compare Internally

The issues that drive the use of background investigations and the elements included in a particular background report don’t depend primarily on the type of employment relationship, whether the individual be a short-term, seasonal hire or an independent contractor. To the contrary, the easiest way to determine if a background screening should be conducted is to look at the policy in place for similar full-time or part-time positions.

For example, retailers hiring seasonal sales representatives during the winter holidays will assign them much the same responsibilities as they do other sales clerks. In all likelihood, performing the same screenings is a good idea. After all, this survey found that dishonest employees steal over five times more than shoplifters, so the return on the modest cost of running background investigations can be recouped by reducing theft.

Assess the Role

But what if there isn’t an in-house comparison to be made? Many gig economy companies hire mostly independent contractors for certain roles. At Uber and Lyft, there simply aren’t full-time drivers who aren’t contractors, for instance. In other cases, certain positions come up seasonally. Summer camp counselor or swimming pool lifeguard are easy examples.

HR will find it most helpful to ask questions about the responsibilities and access of the particular role, much as they do for regular full-time and part-time workers. This might include things like:
  • Will they have access to company funds, such as a cash drawer, or control over company financials, as in an accounting job? 
  • Will they have access to proprietary, sensitive, or confidential information about the company or its customers?
  • Will they interact with the public? In what way? Will this take place in the confines of a customer’s home, a private vehicle, or similarly secluded locations?
  • Will they have access to company vehicles, making driving history important?
  • Will they work closely with children or families in a manner that increases the level of risk?
  • Will they come into contact with customers’ valuable private property?
The basic rule of thumb—the more responsibility, the more intensive the background check.
There may also be standard background screens the organization runs to protect employees and safeguard customers. If a sex offender registry check is part of the hiring process for regular employees, why would one omit this component for other workers?

Negligent Hiring Issue

One of the key drivers of employers’ background check policies is the potential for negligent hiring litigation. In these cases, individuals bringing suit attempt to hold the employer responsible for an accident/injury or other harm (e.g., sexual assault) due to the employer’s failure to screen out potentially dangerous or incompetent workers. The possibility of large court awards or settlements, reputational damage, and harm to employee and customer relationships has employers seeking the safest choice, using applicant screening as a vital step to inform their hiring decisions.

Among the resources Asurint has developed is a white paper on negligent hiring. It specifically deals with transportation roles but also includes general information you may find helpful as you review background screening policies for non-standard employment relationships. You can access a copy here.

Don’t Sweat the Ask

A closing point, in today’s market, independent contractors, freelancers, and other gig and seasonal workers are becoming accustomed to background checks as a condition of landing work. It’s considered reasonable to request a background investigation and even expected for certain types of roles. Simply partner with a background search provider with built-in compliance protections to help stay on the right side of the complex laws that apply, and you really are better safe than sorry.

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