The Consumer Financial Protection Bureau on Thursday cautioned companies against using tools that monitor or evaluate employees without their knowledge or consent.
The federal agency issued its warning in response to what it said is increasing use of new technology to track workers, including algorithmic scores or background reports compiled by outside parties, the CFPB said in a news release. The information could be used to anticipate worker resignations or union-organizing activities and potentially influence hiring or promotion decisions, the agency said.
“Workers shouldn’t be subject to unchecked surveillance or have their careers determined by opaque third-party reports without basic protections,” Rohit Chopra, the agency’s director, stated. “The kind of scoring and profiling we’ve long seen in credit markets is now creeping into employment and other aspects of our lives.”
Some companies mandate that workers install apps on their phones that track their behavior and can be used to access their work, the agency offered as an example.
Companies using third-party consumer reports about employees are required to follow Fair Credit Reporting Act rules by obtaining consent and being upfront information being used to make adverse decisions, allowing workers to dispute incorrect data, the CFPB said.
Guidance issued by the agency states that companies need to fix or delete any information that cannot be verified to make sure that employees are not “unfairly penalized due to errors in these reports and have the opportunity to set the record straight,” it said.
Amazon drew backlash from some lawmakers and privacy advocates for its plan to put surveillance cameras in its fleet of delivery vans in 2021, with the e-commerce giant labeling the move as a safety measure.
The National Labor Relations Board earlier this month issued a complaint alleging Apple fired an employee for advocating for workplace changes on Slack, a messaging app used by businesses.
Apple did not immediately respond to a request for comment.
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