IMPORTANT! New Jersey: New Geotracking Notice Requirement for Employers

APPLIES TO

All Employers with NJ Employees

EFFECTIVE

April 18, 2022

QUESTIONS?

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AB 3950 prohibits employers from knowingly making use of a tracking device in a vehicle used by an employee without providing written notice. “Tracking device” means an electronic or mechanical device which is designed or intended to be used for the sole purpose of tracking the movement of a vehicle, person, or device, but does not include devices used for the purpose of documenting employee expense reimbursement.

First, employers should note the distinction that the requirement is for employers to provide written notice rather than obtain written consent, as may be the case in some other jurisdictions. Second, the rule applies regardless of who owns the vehicle being used by the employee. Third, the definition of “tracking device” appears to be narrowly scripted. Presumably, it does not apply to smartphones, which have a multitude of functions other than GPS tracking, or other similar multipurpose devices. However, it may apply to movement tracking devices used for tracking routes or monitoring safe driving.

Employers who fail to comply may be subject to a $1,000 civil penalty for the first violation, and up to $2,500 for each subsequent violation. Notably, the bill does not apply to state or local government entities or public transportation systems. It also does not interfere with interstate commerce regulations, such as using electronic communication devices mandated by the Federal Motor Carrier Safety Administration.

Action Items

Immediately provide written notice to employees of the use of geotracking devices.
Restrict geotracking to legitimate business needs and avoid privacy violations, as may be required by federal and state law.
Keep geotracking data confidential on a need-to-know basis.
Have appropriate personnel trained on the new rule.
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Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.