Uber has become one of the biggest businesses in the transportation sector after starting as an industry disruptor. Since then, the company’s model has significantly impacted how people get around—and how we think of work. As transportation has shifted away from traditional taxis towards ridesharing, a new gig economy has been on the rise simultaneously. However, such rapid growth has come with risks. Ridesharing background checks are one of the best tools for managing those risks.
The gig economy includes more than Uber and Lyft, where passengers request rides and drivers respond to those requests via a smartphone app. Today, freelancers drive, deliver groceries, and do even more work for brands under the guise of independent contracting. These individuals interact directly with the public, and even though they are freelancers, you could still be liable for their negligent or criminal actions. Because anyone can download a gig economy app and apply for work, it is vitally important to conduct thorough screening before your business agrees to contract with a freelancer.
This guide will review independent contractor background checks, why they’re important, and how they should apply to ridesharing and other gig economy jobs. We’ll also explore how you can create a policy that simplifies taking advantage of the freelancing marketplace without unnecessary risks. What do you need to know? Let’s begin with why this effort is important in the first place.
Employers have the right to understand the people they employ in their business. Besides non-discrimination laws, most businesses have considerable latitude in selecting individuals they deem most suitable for working with their business. Even in roles where individuals don't contribute to a "company culture," as with ridesharing, companies must still know that their employees can do their jobs effectively. Beyond reliability and the experience or skills suitable for the job, safety is also critical.
Using the different types of background checks allows employers to see whether a candidate satisfies all their criteria. It is also an opportunity to evaluate any red flags or signs that indicate a candidate could pose a risk to the company, its employees, or the public. For example, someone with a history of multiple drunk driving convictions is not likely to be the candidate a shuttle service would want to hire. If that individual re-offended while on the job and caused harm, the employer who hired them could be liable for negligence.
Therefore, background checks let employers build confidence in applicants’ suitability across all categories, which reduces potential liabilities. For ridesharing, these four categories are as follows:
Climbing into a vehicle with a stranger comes with some inherent risks. Most often, we think about the risks of the road and prefer a driver with a history of safe and responsible driving. However, a driver must be trustworthy on many levels. Unfortunately, numerous headlines from the past decade involved Uber or Lyft drivers committing crimes against passengers or even driving them to other destinations against their wishes. That led to headlines including “Uber Vows To Devise a More Thorough Background Check Process To Protect Passengers.” Later, the company did follow through when Uber announced an expansion to its background check policies.
Background checks can’t automatically stop all bad actors from reaching freelance positions, but they can help employers identify when someone poses too much of a risk. Keeping passengers safe is one of the biggest reasons for driver background checks.
Liability is a major concern for any business, especially those employing freelancers for ridesharing. Even a regular freelance provider of a non-transportation-related service could pose a liability risk to the business based on their actions. Vetting candidates reduces this risk by ensuring employers can see any warning signs, such as prior criminal convictions or reckless driving. Employers can later point to these efforts to indicate they took all possible steps to make a safe hiring choice.
When you hire someone, you're not merely selecting an employee but a representative of your brand. That's a very important concern when considering procedures for freelancers acting on your behalf out in public. Importantly, verifications can help you uncover if a candidate has been untruthful or less than forthcoming during hiring. By verifying their credentials using driver background checks and ensuring a safe history, you can place trust in them more confidently.
Finally, there's always the issue of compliance. Regulators want to protect the public, and ridesharing and other gig economy jobs have become increasingly scrutinized in recent years. In many states and local areas, there are now specific rules and restrictions in place that employers must follow. From automatic disqualifications to criminal background check requirements, proper vetting ensures you can meet these obligations easily.
With the importance of background checks for Uber drivers and other freelancers established, what tools do you have at your disposal? There is more than one type of background check. A good procedure uses multiple background checks and tools to cover all bases, minimizing the chance of missing important information. Let's consider the major types you should know as you build a policy suitable for leveraging the gig economy.
Criminal history checks are what most people think of when they imagine a background check process. It's true; they are the most common type and provide some of the most useful and critical information for managing liability risks. In the gig economy, you may be required to use specific background checks based on your location. Always review local rules and regulations before vetting candidates.
A criminal history check will show you information about crimes the applicant was convicted of. Arrests don't typically appear on these checks. What you see will also depend on the type of resource you check. What resources should you build into your process?
State and federal databases
There is no one central repository of all criminal records. Instead, most states usually feed all conviction and criminal justice data into a state database. Usually, the state police maintain these databases, but not all. Third-party consumer reporting agencies such as backgroundchecks.com can access these databases and report matches to your candidate's information. Sometimes, you may need to check local county court records to stay current on the latest information about a candidate.
The phrase "federal criminal database" usually refers to systems such as the NCIC, operated by the FBI. These checks require fingerprint data to run and can report state-level and federal crimes. Several jurisdictions have moved to require fingerprint background checks for all rideshare drivers. However, remember that the federal system does not always have the most current data from state or county-level convictions. A good procedure will incorporate as many sources as possible.
Sex offender registries
Separate from criminal databases are registries that contain information about convicted sex offenders. It is vital for employers to check these roles to see if their candidate’s name is on the list. Consider how important it is to ensure that such applicants don't enter a vehicle with vulnerable individuals. Checking these registries in your current location and in places where an applicant may have lived in the past is an essential item on your due diligence checklist.
Keeping the roads safe is a job for everyone. For employers in the transportation and ridesharing sector, though, it is your responsibility to ensure you only hire those with a good record of safe driving. Both Uber and Lyft background checks involve checking a driver's background. In some cases, such as freelance logistics providers (e.g. in over-the-road trucking), you will need to go further and check a driver's commercial license status.
Motor Vehicle Records
A motor vehicle record, or MVR, is an official report containing an individual’s driving history. A driver may have more than one MVR available if they’ve held a license in more than one state. MVRs usually contain a thorough record of violations, including moving and non-moving infractions. Citations such as speeding, reckless driving, DWI, and others will appear on an MVR. Reported accidents may also appear. Use these reports to assess someone’s capability behind the wheel.
Checking Commercial Driver's Licenses
If the job requires a CDL to operate the vehicle, you should verify that the individual’s license is current and in good standing. For heavy transportation involving hazardous materials or vehicle types, you will also need to verify that the driver has the appropriate license endorsements.
What about an applicant's past employment and educational history? Depending on the job, this information can either be very important or not as relevant as other factors. Uber drivers do not need a college degree or even a history as commercial drivers, for example.
Those credentials could mean the difference between a job done well or altogether wrong for professional freelancers beyond transportation. Identifying discrepancies is a red flag that could indicate a candidate is not necessarily as trustworthy as you'd like. What resources do you have in the world of background checking to explore these areas?
Verifying past employment and educational credentials
These verifications confirm that applicants have been truthful about their backgrounds and possess relevant skills. This process is not automatic and requires contacting employers and educational institutions to verify an applicant’s history there. For example, you may confirm that an individual worked for another transportation company, the dates they started and ended, and their position. You might also wish to see if someone earned a specific certification by contacting the licensing agency for more information.
Reference checks
Checking references helps employers improve their sense of the applicant as an individual. Contacting references allows one to ask questions about the applicant and how they might fit in with the company. Although you are not likely to learn any serious negative information from self-supplied references, you can still develop a sense of the applicant as a person. For many employers, that’s an important step.
Ensuring a safe work environment can mean testing whether a candidate uses illegal drugs. Although drug testing has become more complicated with the growing legalization of cannabis, it is still a requirement in many sectors, especially transportation. How does this process impact those who hire freelancers? It's important to understand what options you have.
Types of drug tests
Anyone driving should be sober, whether driving for work or personal reasons. Drug tests build confidence that an applicant is not a habitual substance user that could impair them on the road. Although many jurisdictions have legalized marijuana, and some have even barred drug testing, those prohibitions don’t apply to the transportation industry. Department of Transportation-regulated businesses must disqualify applicants automatically for cannabis use.
There are multiple types of drug tests employers can choose. They vary based on the type and number of substances they test for during analysis. The most common drug tests look for substances such as marijuana, opioids/opiates, methamphetamine, and cocaine.
Second Chance considerations
It’s important to remember that people can and do change—past mistakes do not always indicate future behavior. Many states and communities have recognized this and put into place “fair chance” or “second chance” laws to ensure better access to jobs. At a time when finding space in the gig economy with a criminal record often proves challenging, it’s important to know when and how you must observe these rules.
Read more about “ban the box” laws that limit when you can conduct applicant vetting, or learn about how federal law has changed in this area.
How does a good vetting procedure look in practice today? Over the 10+ years, the process has undergone a significant evolution. In the early days, Uber especially received frequent criticism for the lax nature of its hiring policies. In 2014, one rideshare startup aimed at Uber and Lyft with background checks more targeted and focused than theirs. Today, that’s all changed.
Uber and Lyft use a multi-part background check process administered through an accredited third-party provider. Because these companies operate in every US state and many other locales, they must follow various regulatory and legislative requirements for each jurisdiction. Therefore, the specifics of what each background check entails can vary significantly from city to city. For example, Uber’s website states that their process involves “a Motor Vehicle Report review and a criminal background check.”
Most ridesharing providers follow a similar procedure. They review a candidate’s driving history, sometimes in every state where the candidate has held a license. They also conduct a thorough background check to screen for specific red flags that the company considers potential disqualifications, such as violent crimes or sexual abuse. Reference checking may also be a part of the process.
Uber background checks automatically disqualify candidates with “convictions for felonies, violent crimes, sexual offenses, and registered sex offender status.” “Terrorism-related offenses” are also an automatic disqualifier. Uber will disqualify drivers with pending charges for these crimes at least until the charges “are resolved in [a driver's] favor.” Uber says its criminal history checks include local, state, and national searches.
Drivers for Lyft and Uber must demonstrate that they meet specific requirements, including age, driving history, and a clean record. Uber's review of the Motor Vehicle Report, or MVR, has several purposes. The first is to establish whether the applicant has a driving history that meets the company's requirements for experience and safety. Uber requires a valid license from a US state and at least one year of “licensed driving experience.” Drivers under 24 must show at least three years of driving experience, while those over 25 only need to demonstrate one year.
Both Uber and Lyft provide potential riders with a helpful tool to look up requirements they must meet in their local area, as it can vary substantially nationwide.
During its driving record check, Uber also looks for driving infractions that may indicate a history of reckless or unsafe driving behavior. In most cases, Uber looks for “major driving violations”—not minor speeding tickets or other small moving violations. However, Uber does note that a driver can be disqualified if they have a “recent history of minor driving violations.” The company also states that even no-fault accidents reported on the MVR may be disqualifying in some places, per local laws.
Ridesharing background checks have evolved beyond a process that occurs only at hiring. Starting in 2018, Uber completed an effort to implement ongoing criminal monitoring for its drivers. By April 2019, Lyft background checks also incorporated a continuous monitoring program. This system monitors criminal data sources and notifies Uber automatically if a driver is charged with a disqualifying crime. Uber then decides how to handle the incident and whether the driver should be investigated, suspended, or terminated. In some states and cities, Uber runs multiple background checks on drivers throughout the year because of local regulations.
Ridesharing isn’t the only part of the gig economy nor the only place where companies rely extensively on independent contractors. These types of workers are very useful for extending the workforces of small businesses or filling a particular skill gap. However, hiring them comes with many of the same concerns that ridesharing companies face. While you should still rely on the pillars of the process, such as an independent contractor background check, some broader considerations are also at play.
There’s a difference between contractors you hire through an agency and true freelancers. Most often, if you use a staffing agency or related business, they will handle the screening process. You can still opt to conduct additional screening on your own. Actual freelancers are fully self-employed individuals who will only have a contractual relationship with your business. So how do people do background checks for freelancers?
Though freelancers work for themselves, you must still treat them as you would a regular employee for screening. The process works the same—but you must be proactive and implement a process to vet them individually as needed. Remember, you will still need to follow ban the box laws and adhere to the Fair Credit Reporting Act regulations.
Embracing the right technology for the job is vital to succeeding. When hiring freelancers, you may find it best to leverage emerging new HR tools to manage the process. Since freelancers typically interact with businesses more asynchronously (versus someone in the office), using the latest technology benefits both parties. Some HR tools that help protect employers and employees include Slack, SAP Fieldglass, and ResourceGuru. Each provides an opportunity to communicate and manage freelancers in an increasingly digital environment.
There are many layers to the background check workflow, which can sometimes be confusing or even overwhelming. How can you be sure that your business is in the best position to take advantage of the gig economy’s benefits? Following established best practices in your business will ensure that the gig economy works well for you instead of being a burden to access. Let’s consider three of those key practices you should put into place.
For the sake of both consistency and to reduce liability, you should use the same process for background checks every time. No one person should undergo more or less vetting than another individual. Creating a standard procedure, or SOP, for your vetting process is the best choice. This should be a written document of guidelines that specifies how you will use checks, which you will check, how you will gather consent, where you will order reports, and how to evaluate them. With a clear set of rules in place, you can create a fairer process for all involved.
The regulatory environment around background checks changes continually. Remaining current on these changes and noting any that apply to your industry or hiring situations. Update your policy to incorporate these changes and make sure those involved in the process understand the changes. Don’t get caught by surprise when the law changes.
Applicants want to know where they stand in the process. While you may not choose to disclose how you make decisions, you should be upfront with applicants about the need for the process and how long it may take. Such insight helps applicants understand what to expect when they’ve completed their application and await word of your final decision. Good communication reduces confusion, fosters goodwill between employers and applicants, and simplifies steps such as obtaining applicant consent.
For many years, drivers for Uber and Lyft have been involved in litigation over whether their drivers are independent contractors or actual employees. Ultimately, that question was settled in California by passing ballot Proposition 22 in 2020. Prop 22 classifies all ridesharing workers as contractors, not employees. However, among its other provisions was a new mandate for ridesharing background checks. California now mandates that all “app-based drivers” undergo local and national background checks before hiring.
The status of the FCRA regarding independent contractors is murky. Some employers have held that independent contractors are not employees, so they don’t screen them for employment purposes. In such a case, the FCRA would not apply. One court agreed with this interpretation until an applicant complained that the background check forms represented themselves as for employment. The court then ruled that the FCRA did apply. To avoid such confusing and potentially legally-fraught situations, the best practice is to follow the FCRA for all employees and contractors.
Uber continues to expand its background check policies in many ways. These improvements include an annual background check on all drivers and a continuous monitoring program that alerts the company of any new criminal charges against the individual.
As the ridesharing industry responded to public pressure and a string of tragic incidents, a thorough set of procedures for a new industry has emerged. Today, background checks for ridesharing companies and others continue evolving. From implementing an annual background check and continuous monitoring to tightening restrictions, the goal of better safety continues to drive change. Today, startups and established players in the gig economy have a solid blueprint to avoid failing in due diligence.
The need for thorough ridesharing background checks is apparent, even setting aside the need to satisfy regulatory requirements. For those looking to build a business using support from freelancers and for those carving out a niche in the gig economy, good screening should be a cornerstone of your hiring process. With backgroundchecks.com, finding the information you need and the products to make it happen is always easy. Are you ready to hire effectively in this new and changing environment?