Is Employee Monitoring with GPS Technology Legal?

GPS tracking and navigation devices have become a part of everyday life in the U.S. and many other parts of the developed world. We have GPS on our phones and in our cars as little helpful tools that get us where we need to go, or even keep our loved ones safe. However, the very feature that makes this technology so helpful is also what makes it so potentially creepy. It is quite unnerving to think that someone might be tracking your every movement, especially without your consent.

We’ve reported on big, landmark cases that called into question under what circumstances the police could use GPS technology to track a suspect. We’ve also reported instances spouses and relatives, or just plain stalkers have used tracking devices to spy on their victims. There are serious privacy concerns to consider when using GPS technology, so where along the ethical line does employee monitoring fall?

Generally speaking, it is legal for employers to monitor employees by tracking company-owned vehicles or smartphones. An employer doesn’t have the right to track employees without them being aware, nor can an employer track employee’s personal vehicles or belongings. To be safe, employers should always check with the local laws and maybe consult a lawyer before implementing a tracking system. This way, you have all your bases covered and you can properly notify employees of the new system.

Recently, a Schindler Elevator Corporation employee in British Columbia challenged the legality of the employer’s GPS monitoring system. British Columbia has strict laws regarding employee privacy under the Personal Information Protection Act (PIPA). The employee felt that the company was violating his privacy rights by monitoring the vehicles of elevator mechanic drivers.

The company challenged the accusation, stating the the tracking system was primarily for business use and perfectly legal under PIPA. They did not collect any personal information, only vehicle information, so personal privacy was never violated. The main argument was that the GPS monitoring system provided legitimate benefits to the business, such as more efficient route planning, improved driver safety, and reduced “time theft”.

It was left up to the Privacy Commissioner to determine if the employees’ privacy rights were being violated per PIPA. The Commissioner agreed with the employee’s union that the data being monitored could be considered “personal”, because it could be used to identify an individual driver. However, there was still the question of whether the data being tracked was “employee personal information”. The law states that employee personal information could be collected and used without employee consent if “solely for the purposes reasonably required to establish, manage, or terminate and employee relationship.”

In order to determine if the privacy rights of the Schindler Elevator Corporation employees had been violated, the Privacy Commissioner had to consider the following questions:

Q: Is the information collected of a sensitive nature? Is more information collected than is reasonably required for the employer’s purposes?

A: The information is not sensitive nor is more collected than necessary for legitimate business purposes.

Q: Is the collection and use of the information likely to be effective in fulfilling the company’s objectives?

A: The employer reported a 30 percent drop in accident costs since implementing the GPS System. This was a good indication the GPS System was effective in promoting safe driving habits. The GPS System was also effective in verifying hours of work.

Q: Are there alternative means to serve the same ends?

A: No. Self-reporting by drivers appeared to be the only alternative to the GPS System and this was not as effective.

Q: Has notice of the purpose of the GPS System been provided to employees?

A: The employees were properly made aware of the operation and purpose of the GPS System.

Based on these criteria, the Privacy Commissioner determined that the company was within its rights to use the GPS technology. Because there were plenty of legitimate business-related benefits to using the technology, and because the employees were properly notified of the monitoring policy, PIPA states that privacy rights were not violated.

The PIPA law is very specific to a British Columbia, so employers in other regions can only use this case as a guideline for best practices. Checking in with a lawyer is always the best way to protect yourself from unknowingly violating employee privacy rights. Whether you’re installing a surveillance system for security purposes, or you want to install a GPS fleet tracking system for your delivery service, knowing the local laws is always your safest bet.

Typically tracking company-owned property will be fair game, as long as employees are notified that their movements are being monitored. There should also be a business-related justification for the tracking, other than keeping tabs on your employee’s whereabouts. However, tracking an employee’s phone or car without them knowing could lead you to a world of legal troubles.

Is Employee Monitoring with GPS Technology Legal?