The CFPB highlighted instances where employees are required to install behaviour-tracking apps on their mobile phones to access work-related functions
The Consumer Financial Protection Bureau (CFPB) has issued a caution to companies employing tools to monitor or evaluate employees without their awareness or consent. Responding to a growing trend in workforce surveillance, the federal agency highlighted concerns over new technologies that track workers, often utilising algorithmic scores or external background reports. These tools, increasingly applied to predict resignations or detect union activity, could also influence decisions on hiring, promotions, or disciplinary actions, the CFPB noted in a recent press release.
“Workers shouldn’t be subject to unchecked surveillance or have their careers determined by opaque third-party reports without basic protections,” stated CFPB Director Rohit Chopra. He added, “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 highlighted instances where employees are required to install behaviour-tracking apps on their mobile phones to access work-related functions. Such monitoring practices, if applied without transparency, raise questions of fairness and accountability in the workplace, the agency noted.
Under existing rules, companies utilising third-party consumer reports for employee evaluations must adhere to the Fair Credit Reporting Act (FCRA), which mandates employee consent and disclosure of any information that may lead to adverse decisions. The CFPB’s recent guidance emphasised that employers should ensure data accuracy by correcting or deleting unverifiable information, so employees are not unfairly penalised due to errors. The guidance also grants employees the right to dispute any inaccuracies, providing them an avenue to “set the record straight.”
Recent controversies spotlighting surveillance practices have fuelled debate over privacy in the workplace. In 2021, Amazon faced criticism from lawmakers and privacy advocates over its plans to install surveillance cameras in delivery vans, framing the move as a safety measure. Meanwhile, the National Labor Relations Board filed a complaint earlier this month alleging that Apple had dismissed an employee for using Slack, a business messaging app, to advocate for workplace changes.
As surveillance tools become more advanced and widespread, the CFPB’s directive underscores the need for transparency and employee rights in the growing realm of workplace monitoring.
