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Supervisors are launching a new era of labor relations in offices.
The U.S. Consumer Financial Protection Bureau (CFPB) has issued new rules to protect workers from covert monitoring and automated decision-making systems.
The CFPB noted that companies that use employee data collected by third parties are required to follow the Fair Credit Reporting Act (FCRA). This means that employers must obtain the consent of employees, tell what data about employees is collected, and give them the opportunity to challenge incorrect information. The CFPB recalled that tracking systems used to be used mainly in the field of lending, but now the technology has begun to penetrate the workplace.
The CFPB document deals with reports on employees that employers use. Reports can include more information than regular checks, such as data from apps that employees are required to install on their personal phones to monitor their actions. With the help of such reports, companies can predict employee behavior, decide who and which tasks to assign, apply disciplinary measures, and even monitor employee activity on social networks. Such data can affect a person's career, although they may not even be aware of the collection of information about themselves.
The FCRA requires employers to comply with several important rules:
In addition, companies can only use the collected data to make decisions about employees, not for sales or other purposes. The CFPB plans to work with other agencies to ensure that employers comply with the rules and do not misuse information about their employees.
The CFPB also advises employers to review their data practices to ensure that they are compliant with the FCRA.
Source
The U.S. Consumer Financial Protection Bureau (CFPB) has issued new rules to protect workers from covert monitoring and automated decision-making systems.
The CFPB noted that companies that use employee data collected by third parties are required to follow the Fair Credit Reporting Act (FCRA). This means that employers must obtain the consent of employees, tell what data about employees is collected, and give them the opportunity to challenge incorrect information. The CFPB recalled that tracking systems used to be used mainly in the field of lending, but now the technology has begun to penetrate the workplace.
The CFPB document deals with reports on employees that employers use. Reports can include more information than regular checks, such as data from apps that employees are required to install on their personal phones to monitor their actions. With the help of such reports, companies can predict employee behavior, decide who and which tasks to assign, apply disciplinary measures, and even monitor employee activity on social networks. Such data can affect a person's career, although they may not even be aware of the collection of information about themselves.
The FCRA requires employers to comply with several important rules:
- Consent: The employer must obtain the employee's permission to collect and use data.
- Transparency: employees need to be provided with information about what data caused dismissal or refusal to promote.
- Possibility of contestation: if the information in the report is incorrect, the employee should have the right to correct it.
In addition, companies can only use the collected data to make decisions about employees, not for sales or other purposes. The CFPB plans to work with other agencies to ensure that employers comply with the rules and do not misuse information about their employees.
The CFPB also advises employers to review their data practices to ensure that they are compliant with the FCRA.
Source
