New Federal Guidelines Protect Employees from Unfair Tracking

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Third-party reports must comply with the Fair Credit Reporting Act.

The US Consumer Financial Protection Bureau (CFPB) has issued guidance to protect workers from unfair surveillance and “opaque decision-making systems.” Although background checks are a common part of companies’ hiring practices, new technologies have increased the extent of worker tracking, especially in remote settings.

“Some employers require workers to install apps on their personal phones that monitor their conduct, which may be used to assess their performance,” the announcement states. Employers can use third parties to gather data on such things as:

  • Time taken to complete tasks
  • Number of messages sent
  • Quantity and duration of meetings attended
  • Web browsing

They can also take screenshots of computers and measure keystroke frequency.

The new guidance states that companies using third-party reports – including “background dossiers and surveillance-based, “black box” AI or algorithmic scores about their workers – must follow Fair Credit Reporting Act (FCRA) rules.”

This means employers must:

  • Obtain worker consent
  • Provide transparency about data used in adverse decisions affecting the employee
  • Allow workers to dispute inaccurate information

Employers should review current practices to ensure compliance.

Read more at the Consumer Financial Protection Bureau.
 
 

 
 
 

11/04/2024

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