Top US Consumer Watchdog Warns Firms Over Tracking Workers

(Bloomberg) — A top US consumer watchdog warned companies not to use tools that track or assess their workers without their knowledge or permission, a move that comes amid the emergence of new technology making it easier to monitor staffers. 

Employers are increasingly deploying tools such as algorithmic scores or background dossiers to assess workers, the Consumer Financial Protection Bureau said in a statement Thursday. These third-party reports could be used to predict activity such as union organizing or job departures, as well as tracking performance and social media activity that may influence career advancement or hiring decisions, the CFPB said. 

"Workers shouldn't be subject to unchecked surveillance or have their careers determined by opaque third-party reports without basic protections," CFPB Director Rohit Chopra said in the statement. "The kind of scoring and profiling we've long seen in credit markets is now creeping into employment and other aspects of our lives."

The CFPB said it issued guidance to protect workers by requiring companies that use third-party consumer reports to follow Fair Credit Reporting Act rules. That means getting worker consent and being transparent about data used in negative decisions, in addition to allowing workers to dispute incorrect information. The agency didn't identify which companies the guidance pertains to.

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Workers often don't know that personal information is being collected, nor the contents of what companies compile, the CFPB said. Some employers require staff to install apps on phones that monitor their conduct and could be used to appraise their performance, for example, the CFPB said.

In some cases, the information may be sensitive, which could potentially impact hiring decisions or career advancement. It may also be wrong, leading to unfair treatment or missed job opportunities, the CFPB said. 

Under the CFPB guidance, companies must correct or delete any information that can't be verified in those cases to ensure "workers are not unfairly penalized due to errors in these reports and have the opportunity to set the record straight," the CFPB said.