Yes, you can install GPS trackers in company-owned vehicles used by employees, but it is a legally complex area that requires strict adherence to federal and state laws to avoid significant legal liability. The key factor is employee consent. In most cases, you must notify employees in writing that their vehicle location may be monitored while using company property for business purposes. Failure to provide clear notice can lead to lawsuits for invasion of privacy.
The legality primarily hinges on whether the vehicle is considered a private space. Monitoring a company car used exclusively for work is generally more defensible than tracking a personal vehicle an employee uses for work (a "BYOD" or Bring Your Own Device scenario for cars), which is far riskier. Best practices include creating a clear Electronic Monitoring Policy that employees acknowledge in writing. This policy should outline the business reasons for tracking, such as improving delivery routes, ensuring driver safety, or managing fuel costs, and specify that monitoring is limited to work hours.
The following table outlines the primary legal considerations and their implications:
| Legal Consideration | Implications for Employers | Recommended Action |
|---|
| Federal Law (US) | No single federal law prohibits GPS tracking of company assets, but other laws like the Electronic Communications Privacy Act can apply. | Ensure tracking is for legitimate business purposes only. |
| State Laws | States like California and Connecticut have stricter consent requirements. Some states require dual-party consent. | Crucial: Consult with an employment attorney familiar with your state's laws before implementing any tracking. |
| Expectation of Privacy | Employees have a lower expectation of privacy in a company-owned vehicle than in their personal car. | Never track a personal vehicle without explicit, written consent, regardless of its use for work. |
| Unionized Workforce | Tracking may be a mandatory subject of bargaining with a labor union. | Engage in good-faith bargaining with union representatives before implementation. |
| Potential Liability | Wrongful tracking can lead to lawsuits for invasion of privacy, infliction of emotional distress, and wrongful termination. | A clear, acknowledged policy is your best defense against legal claims. |
Beyond legality, consider the impact on employee morale. Transparency about how the data will be used (e.g., for coaching, not just punishment) can help maintain trust. The safest approach is to use GPS data proactively to reward safe driving habits and optimize operations, rather than solely as a punitive measure.
