Government to employers: hey, only WE are allowed to be Big Brother
The Consumer Financial Protection Bureau is making it harder for workers’ consumer-data reports to be used against them on the job.
Employers are increasingly using corporate surveillance systems to generate opaque “risk scores” for their employees based on not just their workplace activity and performance, but what goes on in their private lives, which can be inferred from third-party consumer reports from data brokers like Experian, LexisNexis, and Epsilon.
These scores can be used to issue evaluations or disciplinary actions, reveal involvement with union organizing, or predict staff retention.
The new CFPB guidance warns employers that any use of third-party consumer-data reports must comply with the Fair Credit Reporting Act, which requires the consent of the subject and disclosure of the data collected, and allows employees to dispute any incorrect information.
In announcing the new rule, CFPB Director Rohit Chopra said:
“The kind of scoring and profiling we’ve long seen in credit markets is now creeping into employment and other aspects of our lives. Our action today makes clear that longstanding consumer protections apply to these new domains just as they do to traditional credit reports.”
These scores can be used to issue evaluations or disciplinary actions, reveal involvement with union organizing, or predict staff retention.
The new CFPB guidance warns employers that any use of third-party consumer-data reports must comply with the Fair Credit Reporting Act, which requires the consent of the subject and disclosure of the data collected, and allows employees to dispute any incorrect information.
In announcing the new rule, CFPB Director Rohit Chopra said:
“The kind of scoring and profiling we’ve long seen in credit markets is now creeping into employment and other aspects of our lives. Our action today makes clear that longstanding consumer protections apply to these new domains just as they do to traditional credit reports.”
