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ARTICLE · 28 APRIL 2015

Goal? Identify Rogue Employees Before They Misbehave. Means? Computer Algorithm. Impact? TBD...

An employer’s right to review emails or texts sent on work devices is not a new concept in and of itself.

United StatesEmployment and HR

In an attempt to weed out bad actors before any improper actions are taken, JPMorgan Chase & Co. ("JPMorgan") is implementing a computer surveillance program to identify potential problem employees. The inputs in JPMorgan's computer algorithm identify, among other things, workers who miss compliance classes, employees who violate personal trading rules, and workers who break market-risk limits. The program monitors telephone transcripts and e-mails for key terms that are believed to be problematic or indicative of future bad acts. Thousands of asset-management and investment-bank employees will be subject to JPMorgan's new surveillance program.

The price of defending any potential lawsuits resulting from this program may seem to be a necessary exchange compared to the tens of billions of dollars JPMorgan paid its attorneys since the financial crisis began...

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