True or False: Employers must comply with the FCRA when they obtain background checks on independent contractors.

Employers must indeed comply with the Fair Credit Reporting Act (FCRA) when obtaining background checks on independent contractors. The FCRA establishes guidelines that ensure consumer reporting agencies follow fair practices while collecting and reporting consumer information. This compliance is necessary regardless of whether the individual is an employee or an independent contractor because both fall under the definition of "consumer" in the FCRA.

When conducting background checks on independent contractors, employers must adhere to specific requirements, such as informing the contractors that a background check will be conducted and obtaining their consent before proceeding. This helps protect the rights of the independent contractors and ensures transparency in the process. Therefore, it is critical for employers to understand that their obligations under the FCRA extend to independent contractors to maintain compliance and avoid legal repercussions.