Richard Vanderford:

The top U.S. consumer finance watchdog warned businesses about potential legal problems they could face from using new technology such as artificial intelligence or algorithmic scores to snoop on and evaluate their employees.

The Consumer Financial Protection Bureau on Thursday said “invasive” new tools to monitor workers are governed by a law designed to ensure fairness in credit reporting, giving employees specific rights.

Employees have the right to consent to the collection of personal information, to receive detailed information and to dispute inaccurate information, the CFPB said in the newly released guidance.

“Workers shouldn’t be subject to unchecked surveillance or have their careers determined by opaque third-party reports without basic protections,” CFPB Director Rohit Chopra said.

More companies are leaning on AI and other powerful tools throughout the employment process, using software that can, for example, interview candidatesand surveillance tools that can look for unsafe behavior. Americans have expressed concerns about Big Brother-style surveillance while they are on the job.