The Consumer Financial Protection Bureau (CFPB) and the National Labor Relations Board (NLRB) are partnering to address practices that harm workers in the “gig economy” and other labor markets.
The agreement will focus on ending harmful practices and enhancing the enforcement of federal consumer financial protection and labor laws and regulations.
“Many workers discover that getting a job can mean piling up debt instead of making a living,” CFPB Director Rohit Chopra said. “Information sharing with the National Labor Relations Board will support our efforts to end debt traps that stop workers from leaving one job for another.”
The agreement supports the two agencies’ collaboration on related efforts and recognizes the overlap of potentially harmful conduct that may pose risks to consumers and workers. Consumers and honest businesses can be harmed when anti-competitive financial practices are used to trap workers into jobs or harvest personal data.
“Employers’ practices and use of artificial intelligence tools can chill workers from exercising their labor rights,” NLRB General Counsel Jennifer Abruzzo said. “As our economy, industries, and workplaces continue to change, we are excited to work with CFPB to strengthen our whole-of-government approach and ensure that employers obey the law and workers are able to fully and freely exercise their rights without interference or adverse consequences.”
The two particular areas are employer surveillance and employer-driven debt. Regarding employer-driven debt, organizations reported to the CFPB that workers may increasingly have to personally shoulder debt for employer-mandated training or equipment they might not need. As a result, workers are often saddled with significant debt that may be owed to employers or pursued by third-party debt collectors. That may prevent them from changing jobs for better wages or working conditions.
On employer surveillance and selling personal data, many workers don’t realize that employer surveillance tools to track worker productivity can continue to track them outside of working hours. Further, the companies that own the surveillance tools might sell worker data to financial institutions, insurers, and other employers.
This agreement will look to protect workers from these practices.