This came up in a prior thread, and I'd love to see more discussion about it (I think we all know the company in question).  Here are my issues:

1.  As an independent contractor, we already have our own internal policies and procedures with respect to data information and security, which includes screening of our staff.  This company is requiring that we perform these background checks through their provider (at least down the road), which is redundant.  If we were to agree to this, the company requiring the background check should pay the cost (and their provider isn't exactly cheap - $51.95 + potential additional costs).  To take it a step further, if this were to become the new norm, and all of our clients required that we went through their service provider, we'd be looking at doing dozens of background checks on our staff every 2 years.

2. This company is requiring that the results of the background check be transmitted to them. I have an obligation to my staff to protect their personal information. Furthermore, again if this became the norm, we'd be sending our staff's personal information to hundreds of clients.  I seriously doubt that the company in question is sending the background check of all of their employees to their customers, and I'd suspect they'd have an issue with doing so.

3. I have every confidence in my staff, but what happens if a background check uncovers something that this company finds unacceptable?  Do they then get to make hiring/firing decisions for my company?  That sort of crosses the line of our independent contractor status.

 Discuss... =)