The CFPB Cautions Employers About Using Technology to Track, Assess, and Evaluate Workers
Employers should be mindful of whether workforce tracking technology, including AI, may provide information, such as employee performance scores, that triggers FCRA compliance. The FCRA protects both job applicants and employees. Education about basics of the FCRA is key for all employers, including in-house counsel, due to the proliferation of such tracking and scoring technology. On October 24, 2024, the federal Consumer Financial Protection Bureau (CFPB) published a circular cautioning employers about using workplace tracking technology, including AI, under the Fair Credit Reporting Act (FCRA). The CFPB has the primary regulatory and interpretive role regarding the FCRA and shares the enforcement role with the Federal Trade Commission (FTC). The gist of the CFPB’s circular is that employers may need to comply with the FCRA’s employment-related provisions before using such technology. In his prepared written remarks , CFPB Director Rohit Chopra stated: “We a...