Temporary Agency Employment Records

we are a temporary staffing company. One of our clients wishes to pay roll people through our organization for a period of up to 90 days. At the end of that period, the client may wish to hire regular full time and bring that employee onto his/her payroll. The client is requesting that our company provide them with copies of the employment application as well as copies of the pre-employment tests and screening results, such as background checks, drug-screening, etc.

Our application specifically states that these materials are proprietary and confidential and only for our company or our legal representatives to see.

1. Is it legal to transfer these materials to the client since we are not recruiting the employee, but only pay rolling him if we have the client sign an authorization to release this to them?

2. Is it advisable to have the employee complete the client's application form instead even if our company does all the prescreening and background checks?

What is the best route to follow that would keep us legally compliant with these documents?
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