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How To Avoid Liability Issues With Contractors And Subcontractors

Get to know your contractors and subcontractors

Most employers would not hire a complete stranger to work in their company. Yet, for some reason contractors and subcontractors are excluded from this precaution.  These workers seem to slip between the cracks and no one seems to really know that much about them.

The best way to reduce your chances of hiring someone with a criminal history or a poor work history is to make all prospective job candidates undergo a pre-employment screening that includes a criminal records search. A smart employer will make this a requirement for their company, including any contractors and subcontractors they do business with. Many employers have trusted pre-employment screening firm Accu-Screen, Inc. to conduct their pre-employment background screenings. With 14 years of experience conducting pre-employment background and criminal records screenings, Accu-Screen, Inc. is an excellent pre-employment resource in helping reducing liability issues with contractors and subcontractors.

For example, home improvement giant, Home Depot, is facing the consequences of using contractors and subcontractors without the benefit of a thorough employment background search. Home Depot is redoing background checks on 38,000 installers nationwide, after a Boston Team 5 Investigates report revealed that the home improvement giant sent a convicted sex offender into a single woman's home to remodel her kitchen.

Profile of bad contractors

The only way to avoid a contractor or subcontractor who may be a liability is to do a thorough background screening. The screening should include a criminal records search to rule out violent or other criminal tendencies. Contractors and subcontractors come from all walks of life:

• Accountants
• Plumbers
• Service Technicians

An employer should not assume that an impressive resume’ or even good references indicate an upstanding character. Many times contractors and subcontractors go from job to job and no one checks their background. At the surface everything seems fine, but a pre-employment background screening can sometimes reveal inconsistencies or other negative information. The inconsistencies or negative information needs to addressed and resolved before a contractor or subcontractor is allowed to work on any project. This will help avoid any injury to customers and to a business.

Liability issues with contractors and subcontractors

Employers need to understand their liability issues regarding contractors and subcontractors.  Regardless of how the contractor and subcontractor are hired, an employer is responsible. So even if ABC Company hires a contractor who in turn hires a subcontractor, ABC Company is still liable. For example, if a contractor or subcontractor commits any of the following, the employer is liable:

• Theft
• Embezzlement
• Discrimination
• Sexual Harassment
• Rape
• Murder

Limit your liability with contractors and subcontractors

No employer can prevent or control every action by a contractor or subcontractor, but due diligence is required. A company has the responsibility of due care for its employees and customers. An employer needs to be aware of its employees, including contractors and subcontractors. Taking the time to conduct a complete background screening will reduce the chances of lawsuits stemming from negligent hiring and retention. It will also reduce an employers’ liability should a bad situation occur through the actions of a contractor or subcontractor.

After a bad event, all the finger pointing between employer, contractors and subcontractor will not relieve an employer of liability. The best preventative measure an employer can take is to be aware of their contractors and subcontractors by conducting an employment background screen by a professional employment background-screening agency such as Accu-Screen, Inc. This type of agency has the resources and skills to conduct thorough screenings and help an employer save time and money. Contact them today at www.accuscreen.com or 1-800-689-ACCU(2228) for more information on limiting or avoiding liability for a contractor or subcontractor.