March 10, 2023

CFPB and NLRB Agree to Share Information to Prevent Employer Financial Abuses

Lori Kalani, Bernard Nash

Cozen O'Connor

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Cozen O'Connor

The CFPB and the National Labor Relations Board have entered a Memorandum of Understanding (MOU) in order to more effectively address areas of concern to both agencies, including employer surveillance and employer-driven debt.
The MOU creates a framework for the two agencies to share non-public information while ensuring the appropriate confidentiality safeguards are established and maintained.
The agreement follows the CFPB’s recent efforts to identify financial dangers facing employees, including employer-driven debt—by which employers pay for training or equipment on behalf of an employee who is then prevented from leaving the position until the debt is paid off—and illegal employer surveillance, such as using surveillance tools intended to track worker productivity to continue tracking employees outside of working hours in order to sell their data to other businesses. The Bureau seeks to prevent such practices, which violate the Fair Credit Reporting Act and other consumer protection laws.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.