What is Employee GPS Tracking and Is It Legal?

In 2023, California passed a law that made it illegal for employers to track workers without their knowledge, especially outside work hours. Under AB-984 and California Penal Code §637.7, employers can now face fines of up to $1,000 per employee per day for unauthorized GPS tracking. 

This real law shows how serious GPS tracking rules have become and why it’s critical for both employers and employees to understand what’s legal, what’s not, and how to stay compliant.

In this article, we’ll break it all down in plain English:

• What employee GPS tracking really means
• Whether it’s legal in your state
• How to track staff the right way, without violating their rights

Whether you’re a business owner, HR manager, or an employee wondering about your privacy, this guide will give you clear answers and help you avoid costly mistakes.

(Source: California Lawyers Association)

What is Employee GPS Tracking?

Employee GPS tracking means using location-based technology to monitor where employees go during work hours, usually to improve safety, time tracking, or productivity.

It’s mostly used when employees are on the move: delivering goods, visiting job sites, or driving company vehicles. It’s not meant to spy. It's meant to help businesses operate smoothly and fairly.

Common Ways Employers Use GPS Tracking:

1. Company-Owned Vehicle Trackers

Installed in cars or trucks, these GPS devices monitor routes, stops, speed, and location history.
Examples:

• OBD-II plug-in trackers
• Hardwired trackers under the dashboard
• Magnetic GPS trackers for temporary installs

👉 Confused by all the GPS options out there? Here’s how to choose the best tracker for your business.

2. Mobile App Tracking

Employees download a GPS app on a company-issued smartphone. The app tracks location during scheduled work hours only, and is often used in sales, delivery, or home service roles.

3. Wearable GPS Devices

Used in industries where safety is critical, like construction or mining. These devices track location and sometimes detect movement or falls.

4. Fleet Management Systems with Geofencing

For large teams or vehicle fleets, businesses use full systems that show real-time locations and set geofences, virtual boundaries that send alerts if someone leaves or enters a certain area.

👉Discover how GPS transforms fleet management: Learn What fleet GPS tracking is and how it works

Why Do Employers Use GPS Tracking?

GPS tracking helps businesses save time, protect assets, and stay compliant with labor laws. It’s not just about knowing where employees are. It is about improving how the whole company runs.

Here’s why many employers use GPS technology today:

1. Efficiency & Route Optimization

GPS lets companies find the fastest routes for deliveries, service calls, or field jobs. This reduces fuel use, cuts down travel time, and helps teams complete more jobs each day.

2. Proof of Work Hours

Tracking when and where employees are working helps support payroll accuracy. It also helps employers follow federal labor laws like the Fair Labor Standards Act (FLSA), which require accurate records of work hours.

3. Safety & Asset Protection

GPS tracking can help recover stolen vehicles or equipment. It also lets managers check driver behavior and respond quickly if someone is in danger or off-route.

4. Industry Compliance

In sectors like transportation, construction, and logistics, tracking helps meet rules from agencies like the Department of Transportation (DOT) and Occupational Safety and Health Administration (OSHA).

Did You Know?

54% of U.S. companies now use GPS tracking for their field employees, according to a 2023 report by the Society for Human Resource Management (SHRM).

Is Employee GPS Tracking Legal in the U.S.?

Yes, in most U.S. states, it’s legal for employers to track employees using GPS on company-owned vehicles, phones, or equipment, as long as they follow the law.

At the federal level, GPS tracking is allowed if employees are notified ahead of time, and the tracking is done during work hours for valid business purposes.

What Makes GPS Tracking Legal?

To stay compliant across the U.S., employers should meet three legal conditions:

1. Ownership: Track only devices or vehicles that are owned or issued by the company.
→ Tracking personal phones or cars without consent is usually illegal

2. Disclosure: Notify employees before GPS tracking begins.
→ Best practice: Include tracking in a written workplace policy

3. Purpose: Track only for legitimate work-related reasons, like route planning, time tracking, or safety.
→ Monitoring off-duty behavior may violate privacy laws

What the Federal Law Says

There are no federal laws that outright ban GPS tracking in the workplace. However, employers must:

• Disclose the tracking to employees
• Use GPS only during work hours
• Apply it to company property, not personal devices

Tracking outside these limits may violate privacy protections under the Electronic Communications Privacy Act (ECPA) or, in public sector jobs, the Fourth Amendment.

State Laws Can Be Stricter: Some states add their own rules to protect employee privacy, that we go next.

State-by-State GPS Tracking Laws in the U.S.

While federal law allows GPS tracking at work when done transparently, many U.S. states have their own specific rules. Some require written consent, while others limit when and how employers can track workers, especially outside of work hours or on personal devices.

Below are examples from key states to show how rules can vary.

California

• Law: California Penal Code §637.7 & AB-984
• What It Says: Employers must get written consent before tracking vehicles or devices assigned to employees.
• Key Point: Tracking outside work hours or on personal property is strictly limited.
  (Source: California Legislative Info)

New York

• Law: NY Civil Rights Law §52-c (2022)
• What It Says: Employers must give advance written notice if tracking an employee with a device.
• Key Point: Applies even to company-owned vehicles or phones.
  (Source: NY State Senate)

Texas

• Law: No specific GPS tracking statute
• What It Says: Follows federal standards, but general privacy laws apply.
• Key Point: Consent is recommended, tracking should be limited to work hours and company property.
  (Source: Texas State Law Guide)

Illinois

• Law: Biometric Information Privacy Act (BIPA) implications for location data
• What It Says: Doesn’t ban GPS tracking directly but requires consent for collecting sensitive data.
•  Key Point: Be cautious when GPS combines with biometric or time-tracking data.
  (Source: IL General Assembly)

Massachusetts

• Law: Privacy protections under common law
• What It Says: No GPS-specific law, but tracking without knowledge can lead to invasion of privacy claims.
• Key Point: Disclosure and legitimate business purpose are essential.
  (Source: MA Legal Aid)

Florida

• Law: Chapter 934 (Security of Communications)
• What It Says: Tracking a person without their knowledge may violate wiretapping laws.
• Key Point: Best to avoid tracking personal devices or after-hours locations.
  (Source: Florida Senate)

What Employers Should Do in Every State:

• Always notify employees in writing before using GPS.
• Avoid tracking after hours or off company property.
• Check your state’s specific laws or legal opinions.
• When in doubt, consult a labor attorney to avoid lawsuits or privacy violations.

Do Employers Need Consent Before Tracking Employees?

Yes, in many U.S. states, employers must get written or digital consent from employees before using GPS tracking, especially if tracking is done on a personal phone, outside of work hours, or without their knowledge.

Even where it’s not legally required, getting consent is strongly recommended to avoid privacy violations and legal trouble.

When Consent Is Required

Consent is Required if:

• The employee is using a personal phone or vehicle
• GPS tracking continues after clocking out
• The business is located in a state with strict privacy laws (like CA or NY)

Consent is Not Required (in some states) if:

• The GPS device is installed on a company-owned vehicle or device
• The employee is aware of the tracking
• Tracking only occurs during paid work hours
• No specific state law restricts it (e.g., Texas, Florida)

Still, lack of consent can lead to lawsuits, especially if employees feel misled or monitored unfairly.

Why Consent is Still a Best Practice (Even if Optional)

Even in states with relaxed laws, collecting consent:

• Builds trust and transparency with employees
• Helps avoid misunderstandings or legal disputes
• Provides proof of compliance if a complaint is filed
• Ensures that GPS use aligns with company policy and values
• What Consent Should Include

A proper GPS tracking consent form or policy should clearly state:

• What devices are being tracked
• When tracking begins and ends (e.g., during work hours only)
• Why tracking is used (e.g., safety, time verification)
• How data will be stored and who can access it
• Employee rights and opt-out conditions (if any)

Ask employees to sign or digitally acknowledge the policy and retain a copy for records.

Federal Laws Governing Employee GPS Tracking

While there’s no single federal law that bans or approves GPS tracking at work, several U.S. regulations set important limits. These laws help protect employee privacy and outline what employers can and can’t do, especially in public-sector jobs.

Here’s a quick summary:

1. ECPA (Electronic Communications Privacy Act)

The ECPA prohibits employers from tracking or monitoring electronic communications without proper authorization. This includes GPS signals from mobile apps and devices.

Key Notes:

• Consent is strongly advised, especially when tracking involves smartphones or personal equipment.
• Employers should get written approval before using GPS on any non-company-owned device.
• Applies to both private and public workplaces.

2. Fourth Amendment

This part of the U.S. Constitution protects individuals from unreasonable searches and seizures by the government.

Key Notes:

• Mainly applies to public-sector employees (like teachers, government drivers, municipal workers).
• Government employers must show that GPS tracking is justified and not overly invasive.
• Private employers are generally not subject to this law unless acting as a government agent.

3. NLRB Guidelines

The National Labor Relations Board (NLRB) provides rules that protect employees from unfair surveillance, especially in unionized or organizing workplaces.

Key Notes:

• Employers can’t use GPS or electronic tracking to monitor protected activities, like forming a union.
• Applies to most private workplaces in the U.S.
• Policies must be reviewed to ensure they don't discourage lawful employee rights.

Employee Rights & Privacy Concerns

GPS tracking can improve workplace safety, efficiency, and accountability. But it must respect employees' rights. In the U.S., workers have legal and ethical protections when it comes to how, when, and where they’re monitored.

Here’s what every employee should know (and what every employer must respect):

1. The Right to Know When Tracking Is Active

Employees have the right to be informed when GPS tracking is in use. Whether it's a company-issued vehicle, mobile app, or wearable device, tracking cannot be done in secret.

• Most states require clear disclosure or written notice as we learned above.
• Failing to inform workers can lead to privacy lawsuits or labor board complaints.
• Tracking policies should be visible, easy to understand, and part of onboarding documents.

2. The Right to Privacy Outside Work Hours

Even when GPS tracking is allowed during work, employee privacy doesn't end with the workday.

• Tracking employees after hours, during breaks, or while off the clock is often viewed as invasive.
• Laws like California AB-984 specifically ban tracking vehicles assigned to employees during personal time.
• Some courts have ruled that constant tracking without limits can violate an employee’s right to a private life.

Best Practice: GPS tracking should automatically pause outside of scheduled work hours unless there's a documented safety or security reason.

3. Limits on Tracking Personal Devices (BYOD)

Tracking an employee’s personal smartphone or vehicle, even with consent, carries higher legal risk.

• Under the Electronic Communications Privacy Act (ECPA), monitoring personal devices without clear, documented consent can be considered unlawful surveillance
• Even if consent is given, employees may later challenge the scope or clarity of what they agreed to
• Employers should avoid GPS tracking on personal property unless absolutely necessary, and offer a company device if tracking is required

4. The Right to Data Transparency & Security

Employees have the right to ask:

• What location data is collected
• How long it’s stored
• Who has access to it
• How it’s protected from misuse or leaks

Employers must handle GPS data responsibly under general data privacy rules. Mismanaging tracking data can lead to identity risks, legal violations, or reputational harm.

5. Freedom from Retaliation or Overreach

GPS tracking should never be used to:

• Retaliate against employees for reporting concerns
• Monitor lawful union activity
• Spy on off-duty political or religious participation

The National Labor Relations Board (NLRB) warns against surveillance that could interfere with protected employee rights.

Employer Compliance Checklist

Using GPS tracking at work can help improve efficiency and safety, but only if it’s done the right way. To avoid legal issues, privacy complaints, or loss of employee trust, employers must follow a strict set of best practices.

Here’s a complete checklist for staying compliant with GPS tracking laws in the U.S.:

1. Review Federal & State Laws Regularly

GPS tracking laws can change by state and may evolve over time.

• Check the latest updates for your state (e.g., CA, NY, IL).
• Understand both federal rules (like the ECPA) and state-specific requirements (like written consent).
• When in doubt, consult an employment attorney or HR compliance specialist.

2. Track Only Company-Owned Devices or Vehicles

To minimize legal risk, use GPS tracking only on equipment owned or issued by the company.

• Avoid tracking personal phones or cars, even if the employee agrees.
• If tracking personal property is absolutely necessary, get written consent and explain the boundaries clearly.

3. Provide Written Notice & Get Consent

Transparency is not optional, it’s a legal and ethical necessity.

• Include GPS tracking details in your employee handbook or standalone tracking policy.
• Share this during onboarding or when assigning a GPS-enabled device.
• Get a signed or digital acknowledgment for your records.

4. Limit Tracking to Work Hours Only

Avoid monitoring employees after they clock out, during breaks, or off the job site.

• Many states prohibit or restrict after-hours surveillance
• Most GPS tracking software allows you to set active hours, and use this feature to protect employee privacy.

5. Secure GPS Data & Limit Access

Tracking data can be sensitive, treat it like any other private employee record.

• Store GPS logs securely in encrypted systems
• Restrict access to only authorized personnel (e.g., HR, Operations Manager)
• Don’t share location history unless required for safety, audits, or legal purposes

6. Conduct Periodic Legal & Policy Audits

Set a reminder to review your tracking policies every 6–12 months.

• Are they still legally compliant?
• Do they align with current employee roles and technology use?
• Update them as laws or company needs change

Regular audits help ensure you’re protected, and show employees you take their privacy seriously.

Risks & Penalties for Illegal GPS Tracking

Failing to follow GPS tracking laws isn’t just a small HR mistake. It can lead to serious legal trouble, expensive lawsuits, and long-term damage to your business reputation.

Whether it’s tracking without consent or monitoring outside of work hours, here are the key risks employers face when GPS tracking crosses the legal line:

1. Fines & Civil Penalties

Government agencies and courts can issue hefty fines for unlawful GPS tracking, especially in states with strict privacy laws.

• Fines can range from $1,000 to $50,000 per incident.
• Some states (like California) apply daily penalties per employee.
• Violations under privacy laws like California Penal Code §637.7 or NY Civil Rights Law §52-c can lead to both civil and criminal charges.

2. Lawsuits from Employees

Employees can sue for:

• Invasion of privacy
• Wrongful termination (if GPS data was used to fire someone unfairly)
• Emotional distress or harm from constant monitoring
• Many privacy-related lawsuits also include claims under the Electronic Communications Privacy Act (ECPA) or state labor laws. Which may include additional damages or attorney fees.

3. Reputation Damage

Even if you avoid a lawsuit, getting caught tracking employees without consent can:

• Destroy trust within your team
• Lead to bad press, negative reviews, and social media backlash
• Hurt your ability to attract and retain top talent

Your business could be seen as “spying”, a label that’s hard to recover from. The cost of tracking employees illegally goes far beyond a fine. It can:

• Destroy trust
• Damage your brand
• Land you in court

Play it safe: Always follow the law, get clear consent, and respect employee privacy.

Best Practices for Ethical GPS Tracking

GPS tracking can be a powerful tool for improving safety, productivity, and accountability, but only when it’s done ethically, legally, and respectfully.

Ethical GPS tracking means respecting your employees’ privacy while keeping your business protected.

Here are the key best practices every company should follow:

1. Be Transparent: Explain the “Why”

Start with honest communication. Let employees know:

• Why GPS tracking is being used (e.g., safety, routing, payroll accuracy)
• What will be tracked (vehicle, phone, wearable)
• When tracking will happen (only during work hours)
• How the data will be stored and used

Avoid vague or confusing policy language. Clear explanations build trust — and reduce resistance.

2. Limit Tracking to Work-Related Activities Only

Tracking should start and stop with the workday.

• Don’t monitor employees after they clock out
• Avoid tracking breaks, commutes, or personal errands
• Use GPS tools that let you set work-hour boundaries or auto-disable tracking after shifts

This helps prevent legal issues and avoids crossing ethical lines.

3. Train Managers on GPS Policies & Legal Limits

Many compliance issues happen simply because managers don’t know the rules.

• Train supervisors and team leads on how GPS tracking works
• Make sure they understand what’s allowed, and what’s not
• Require written acknowledgment of your GPS policy during onboarding and policy updates

Well-informed managers are your first line of defense against misuse or complaints.

4. Regularly Review and Update Your GPS Policy

Laws change. So do work environments. Set a schedule to:

• Review your GPS tracking policy every 6–12 months
• Check for new laws in your state or industry
• Adjust policy wording as your technology or operations evolve

Encourage employee feedback when making updates. This keeps your policy grounded and balanced.

Always communicate the “why” behind your tracking. Let your team know it’s about safety, accuracy, and compliance, not control. This builds trust, lowers resistance, and reduces the risk of complaints.

Be open. Be fair. Stay updated. That’s how you track responsibly.

Conclusion

GPS tracking is legal in most U.S. states, but only when it’s done transparently, for legitimate work reasons, and within the rules set by federal and state law.

Employers must notify employees, respect privacy boundaries, and track only during business hours on company-owned property. Consent, clarity, and fairness aren’t just good practice, they’re the law in many places.

Why It Matters

Tracking the right way protects everyone:

• You avoid lawsuits, fines, and legal risk
• Your team knows they’re respected and not being watched unfairly
• Your business runs more efficiently with fewer disputes

The End Result?

By following best practices, you’ll create a safer, more efficient workplace, and build trust with your team. That’s how you use GPS tracking the right way.

Ready to protect your business, stay compliant, and boost efficiency?

👉Buy GPS for Your Business→

Author Disclosure

Written by Ryan Horban,a GPS Tracking Expert with 15+ Years of Experience.

Over the past 15 years, I’ve helped everyone from parents and pet owners to fleet managers and small business teams choose GPS solutions that actually work.

Whether it’s tracking a car, a child, or an entire fleet, my focus is on simple, legal, and effective setups that protect what matters, without the tech headaches.

I've worked hands-on with real users, tested dozens of devices, and know what truly works in the real world.

👉 Connect with me on LinkedIn →

FAQs: Employee GPS Tracking

1. Can my boss track my location after I leave work?

No, most states consider it a privacy violation if your employer tracks you after work hours, especially if you're using a personal phone or vehicle. GPS tracking should only happen during your scheduled work time.

2. Is it legal to track employees without telling them?

In most cases, no. Employers are legally required to notify employees before using GPS tracking. Some states even require written consent, especially if the tracking involves personal devices.

3. What should be included in a company GPS tracking policy?

A clear GPS policy should explain what’s being tracked, when it’s active, why it’s used, how data is protected, and whether consent is required. It should also list who has access to the location data.

4. Can employers track personal phones for work?

Not without consent. Tracking a personal phone without permission can violate privacy laws like the Electronic Communications Privacy Act (ECPA). Most companies use apps on company-owned devices to stay compliant.

5. What happens if an employer breaks GPS tracking laws?

They can face legal penalties, fines up to $50,000, and privacy lawsuits. It may also damage employee trust and lead to bad publicity if the tracking was done secretly or without proper consent.