Consumer Financial Protection Circular 2024-06: Background Dossiers and Algorithmic Scores for Hiring, Promotion, and Other Employment Decisions

The Consumer Financial Protection Bureau (CFPB) has issued Consumer Financial Protection Circular 2024-06, titled, "Background Dossiers and Algorithmic Scores for Hiring, Promotion, and Other Employment Decisions." In this circular, the CFPB responds to the question, "Can an employer make employment decisions utilizing background dossiers, algorithmic scores, and other third-party consumer reports about workers without adhering to the Fair Credit Reporting Act (FCRA)?"