The U.S. Consumer Financial Protection Bureau (CFPB) is intensifying scrutiny of workplace surveillance practices due to concerns over unauthorized data collection using AI-based tools. These technologies, often "black box" algorithms, assess employee performance by collecting personal and biometric data without consent. The CFPB asserts jurisdiction under the Fair Credit Reporting Act (FCRA), which extends protections to prevent unfair profiling in employment.

Organizations must comply with FCRA requirements by ensuring transparency, obtaining consent, and allowing employees to dispute inaccuracies in collected data. Contractors and third-party workers are also protected if they are "controlled" by the employer.

The CFPB, alongside the Department of Labor, emphasizes the importance of balancing technological innovation with employee privacy rights. Surveillance technologies can negatively impact employee morale, creating stress and anxiety, particularly in sensitive sectors like healthcare.

Employers are urged to adopt responsible data practices that align with employee-centric values, enhancing workplace skills and well-being. By prioritizing transparency and fairness, organizations can leverage AI tools effectively while safeguarding employee rights and fostering a supportive work environment.