New Jersey has enacted a law requiring private employers to provide written notice to employees before installing tracking devices in vehicles used by employees. P.L. 2021, c. 299 took effect April 18, 2022.
What the Law Requires
The law requires private employers to give written individual notice before installing a tracking device in any vehicle that will be operated by an employee. The notice must be provided before the tracking device is installed, not after.
What Counts as a “Tracking Device”?
The law defines a “tracking device” as an electronic device designed for the sole purpose of:
- Tracking the movement of a vehicle
- Tracking the movement of a person
- Tracking the movement of another device
Expense reimbursement devices are expressly excluded from the definition, meaning devices used solely for calculating mileage or fuel costs are not covered.
Notice Requirements
The required notice must be:
- Written: not verbal
- Individual: provided to each affected employee, not just posted in a general location
- Prior to installation: given before the tracking device is installed in the vehicle
The notice requirement could be satisfied by a sticker or placard affixed to the vehicle that is visible to the vehicle’s operator. There is no obligation to renew notices periodically, but new notices are required when new tracking devices are installed.
Exemptions
The following entities are exempt from the notice requirement:
- State government agencies and local government entities
- Correctional facilities
- Parole boards
- Charter buses
- Public transit systems
Penalties
Violations of the notice requirement carry the following civil penalties:
- First violation: $1,000
- Subsequent violations: $2,500
There is no stated cap on total civil penalties, meaning multiple violations can accumulate significant exposure.
Practical Takeaways for Employers
New Jersey employers with fleet vehicles should:
- Audit current tracking practices: Identify all vehicles with tracking devices and whether employees have received written notice
- Provide retroactive notice where needed: If tracking devices are currently installed without notice, consult counsel about whether retroactive notice is appropriate
- Develop a tracking notice policy: Create a standardized written notice for future installations
- Update employment agreements and handbooks: Consider incorporating tracking disclosure provisions
- Monitor for additional state laws: Several other states have enacted or are considering similar requirements
New Jersey’s law is part of a broader trend of states requiring employers to be transparent about surveillance and monitoring of employees. Organizations should evaluate their practices in all states where they operate vehicles.
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