Electronic Monitoring
There is growing legislative momentum to regulate employers’ use of electronic monitoring in the workplace. A weak approach is to only require employers to give advance notice to employees of electronic monitoring, as in this 2021 New York State law and this 2024 California bill.
A stronger approach is to include electronic monitoring as part of more comprehensive regulation of employers’ use of digital technologies. For example, California’s 2022 Workplace Technology Accountability Act and New York State’s 2024 Bossware and Oppressive Technologies Act both lay out a broad framework for regulating employers’ use of electronic monitoring and automated decision systems, and also require employers to conduct impact assessments. Similar concepts appeared in 2023 bills in Massachusetts and Vermont, as well as the 2023 federal Stop Spying Bosses Act (and its companion bill, No Robot Bosses Act, see algorithmic management section below). While none of these bills have been enacted into law so far, we support this type of comprehensive approach as most protective of workers.
Another approach is to regulate electronic monitoring through what are known as “just cause” bills, introduced in recent years in Illinois and New York City. These bills prohibit the unjust discharge of workers, establish a framework for justified discipline and firing, and limit employers’ reliance on data from electronic monitoring in making those decisions. In addition, a bill introduced at the federal level would regulate the use of electronic monitoring in the warehouse industry specifically, which we discuss in greater detail in the warehouse quotas section below.
Finally, a 2024 circular released by the Consumer Financial Protection Bureau (CFPB) clarifies that employers must obtain consent, provide transparency and disclosure, and allow workers to dispute inaccuracies when using data gathered from third parties to make employment decisions about them.
Key concepts appearing in one or more policies:
- Employers must give detailed prior notice of any electronic monitoring (particularly if data collected will be used to make an employment-related decision).
- Employers are only allowed to use electronic monitoring for a limited set of purposes, gathering the least amount of data, and affecting the smallest number of workers.
- Employers are prohibited from using electronic monitoring that results in a violation of labor and employment laws; records workers off-duty or in sensitive areas; uses high-risk technologies, such as facial recognition; or identifies workers exercising their rights under employment and labor law.
- Employers are prohibited from relying primarily or exclusively on data from electronic monitoring when making decisions like hiring, firing, discipline, or promotion. Instead, the employer must independently corroborate the data and provide the worker with full documentation, including the actual data used.
- Employers must conduct impact assessments of electronic monitoring systems, testing for bias and other harms to workers, prior to use.
- Employers who electronically monitor workers to assess their performance (through productivity or quota systems) are required to disclose performance standards to workers and apply these standards consistently across workers.
- Productivity monitoring and quota-setting systems must be documented and reviewed by regulatory agencies overseeing workplace health and safety before use.
- Workers have the right to access their data collected through electronic monitoring systems.
- Workers have the right to correct any data collected about them and employers must adjust any employment-related decisions that were based, partially or solely, on inaccurate data.
- Workers must have a private right of action and be protected from retaliation for exercising their rights.