Worker surveillance must comply with credit reporting rules

The US Consumer Financial Protection Bureau on Thursday published guidance advising businesses that third-party reports about workers must comply with the consent and transparency requirements set forth in the Fair Credit Reporting Act.

The Fair Credit Reporting Act (FCRA) was enacted in 1970 to ensure the accuracy, fairness, and privacy of information in profiles maintained by credit reporting agencies. But it also includes provisions that apply when a consumer report is used to make employment decisions.

The Bureau (CFPB) is concerned that companies may be using third-party reports about worker activity or behavior to inform adverse employment decisions (such as firing workers) based on undisclosed surveillance or opaque algorithmic scores.

"Workers shouldn't be subject to unchecked surveillance or have their careers determined by opaque third-party reports without basic protections," declared CFPB director Rohit Chopra in a statement. "The kind of scoring and profiling we've long seen in credit ...