Secret algorithmic scores for hiring now count as 'consumer reports' under federal law

The Consumer Financial Protection Bureau says that algorithmic scores used for hiring or promotion are 'consumer reports.' This means employers using these tools must now follow federal rules about credit reporting.

Companies have been using algorithmic tools to screen job applicants and employees. They often did this without telling people or giving them a way to challenge the results. Now, these companies must treat those scores like credit reports, giving individuals the right to see the information and dispute errors.