On March 9, 2022, the CFPB released an article highlighting workers’ financial experiences. In response to concerns from workers about financial risk or harm at the hands of the very employers from which they seek to earn a living, the CFPB is looking into the consumer financial products or services that workers face in the workplace.
Recently, the CFPB had a roundtable with worker organizations and labor unions representing workers in a wide range of sectors and occupations to share their members’ experiences and challenges. According to participants, workers are increasingly subject to consumer financial products or services that can harm their finances and prevent them from changing jobs. In addition, participants reported that the likelihood of abuse is greatly increased for workers who have been involved in the justice system, are immigrants, or are geographically isolated.
Two major themes of particular relevance to the CFPB emerged during the discussion include:
Employer-driven Debt. Organizations reported that workers increasingly must personally shoulder the expense of employer-mandated training and buying equipment. Consequently, workers often end up with significant debt to their employers or third-party collection agencies, preventing them from switching employers for better wages or working conditions.
Surveillance Technology and Sale of Personal Data. Organizations reported concerns about the rise of new surveillance technology tools that are enabling the collection of unprecedented amounts of information about workers. Some have expressed concerns about the way this information is gathered and used to make decisions that may have a direct impact on workers' financial wellbeing beyond their current employer
According to the CFPB, the roundtable is just the beginning of the Bureau’s focus on the consumer financial products or services that workers may encounter in the workplace.
Read the CFPB’s blog release here.