Over the past 5+ years, I have had several big existing and new clients require it.  I had a very similar response as yours, Craig.  We require background checks for all new hires and we run updates periodically for our own records.  We have a background check division within our company (hence, our name...haha), so it's no big deal to us.  We said we would not pay another company for the same result.  However, as a company, they can background check us on their dime. Due to privacy policies, we are not allowed to share personal information of our employees.  I also said our independent abstractors are not our employees, so we could not enforce that policy unto them.  Like you said, we are and independent contractor - not an employee of said client; therefore we are not obligated to provide them with that information.    The clients accepted the fact we did our own criminal background checks on our employees (and that we kept record of them) and they kept us/added us to their vendor network.  

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