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Background Checks on Independent Contractors (1099)

You can run a background check on an independent contractor, and the safe approach is to follow the same Fair Credit Reporting Act (FCRA) steps you would for an employee: a stand-alone disclosure, written consent, certification, and the adverse action notices if you act on the report. FTC staff have said for decades that the FCRA's employment rules reach people who aren't technically employees, such as owner-operator truck drivers. This guide explains that position and how a Pact order handles it. It is not legal advice.

Updated October 14, 2026 · Checked against the official sources listed at the end

What the FCRA says

The FCRA has extra rules for consumer reports used for "employment purposes." It defines that term as a report used to evaluate a person "for employment, promotion, reassignment or retention as an employee" (15 U.S.C. 1681a(h)).

The question is whether hiring a contractor counts as "employment." The statute doesn't say "contractor." FTC staff have answered it in two places.

The FTC staff view

In a 1998 advisory opinion letter (Allison), FTC staff were asked about trucking companies that use owner-operators. Staff concluded that a trucking operation that uses consumer reports to decide whether to engage individuals as drivers must comply with the FCRA's employment provisions, including disclosure and authorization.

The letter reasoned that "employment purposes" should be read liberally, and that the words "as an employee" in the definition modify only "retention," not "employment, promotion, reassignment."

In its 2011 staff report summarizing 40 years of FCRA interpretations, FTC staff repeated the point. The report says "employment purposes" may apply where an entity uses people who are not technically employees. Its examples include a trucking company checking drivers who own and operate their own equipment, a title insurance company checking people it contracts with, and a nonprofit staffed by volunteers.

Staff letters and reports are not binding law. Ask your attorney how they apply to your contractors.

The practical rule: treat it like a hire

Following the employment steps costs little and avoids the question. For each contractor you screen:

Give a clear written disclosure, in a document that consists solely of the disclosure, that a background report may be obtained (15 U.S.C. 1681b(b)(2)(A)).
Get the contractor's written authorization. It can be on the same document.
Certify to the screening company that you did both and will follow the law (1681b(b)(1)).
If something in the report may lead you not to engage the contractor, give a copy of the report and a summary of rights first, then the adverse action notice (1681b(b)(3) and 1681m).
Apply the same standard to every contractor in the same role.

Fair treatment and records

The EEOC and FTC's joint guide for employers says any background information you use must not be used to discriminate in violation of federal law, and to apply the same standards to everyone. Treat contractors the same way.

When you no longer need a contractor's report, dispose of it securely. The FTC's disposal rule requires reasonable measures to protect consumer report information from misuse when it is thrown away (16 CFR 682.3).

Contractor agreements are not consent forms

Don't bury the background check notice in a contractor agreement or onboarding packet. The disclosure has to stand alone. FTC staff have also said that including a waiver of rights in a disclosure form violates the FCRA. Our guide to background check disclosure and authorization forms covers what belongs on that page.

DOT drivers who are owner-operators

If the contractor drives a commercial motor vehicle under DOT rules, a background check is separate from DOT's own requirements, such as drug and alcohol testing and FMCSA Drug and Alcohol Clearinghouse queries. Pact runs those DOT programs for fleets and owner-operators. Our guide to owner-operator Clearinghouse requirements covers the DOT side.

The FCRA also has special notice rules for some trucking applicants who apply by mail, phone or computer (15 U.S.C. 1681b(b)(2)(B) and (b)(3)(B)). Check them with your attorney if they may apply to you.

How a Pact order works for a contractor

You order online and enter the contractor's full legal name and email. Checkr emails them a secure link. They enter their own details and sign the disclosure and authorization on Checkr's site, so you don't have to collect their Social Security number. Nothing runs before they consent. The report goes to the contractor and to the business named at checkout.

Orders are taken now and start when Pact's Checkr account opens; Checkr then emails the person.

Standard ($32) covers an SSN trace, a national criminal search, a sex offender registry search and a global watchlist search. Premium ($70) adds a 7-year county criminal search and a FACIS Level 3 healthcare sanctions search, which fits contractors who work in healthcare. All sales are final.

Common questions

Can you run a background check on an independent contractor?

Yes, with their written consent. FTC staff say the FCRA's employment rules can apply to people who aren't technically employees, so follow the same disclosure, consent and adverse action steps.

Does the FCRA apply to 1099 contractors?

FTC staff have said yes in their opinion letters and their 2011 staff report. Those views aren't binding law. Ask your attorney, and follow the FCRA steps to be safe.

Can I put the background check consent in my contractor agreement?

No. The disclosure must be in a document that consists solely of the disclosure. Keep it separate.

Do I need to send adverse action notices to a contractor?

If the FCRA employment rules apply, yes. Give a copy of the report and a summary of rights before deciding, then the adverse action notice after.

Who sees the contractor's report?

With a Pact order, the contractor can see their own report through Checkr, and it goes to the business named at checkout.

Does a background check cover DOT requirements for owner-operators?

No. DOT drug and alcohol testing and Clearinghouse queries are separate. Pact handles those through its DOT programs.