Worker surveillance must comply with credit reporting rules

The US Consumer Financial Protection Bureau (CFPB) issued guidance clarifying that third-party worker monitoring and background reports used in employment decisions are subject to the Fair Credit Reporting Act (FCRA), requiring consent, transparency about data used in adverse actions, mechanisms to dispute and correct inaccuracies, and limits on use and resale. The guidance targets opaque algorithmic scoring and extensive workplace surveillance practices, warning employers and consumer reporting agencies to ensure lawful, fair, and accurate handling of worker data.