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.
'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.