ATTENTION NEW JERSEY EMPLOYERS: Written Notice To Be Required Before Tracking Employee-Operated Vehicles 

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By Rachel H. Khedouri, Esq.

Commencing April 18, 2022, private employers in New Jersey must provide written notice to employees before using tracking devices to monitor their movement in vehicles used for work purposes. Governor Murphy signed Assembly Bill 3950 into law on January 18, 2022, after a number of amendments were made in response to his initial conditional veto of the bill. CLICK HERE for the full text of the final legislation.

The amended bill defines a “tracking device” as “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.” The legislation as enacted expressly excludes coverage devices that are used for purposes of employee expense reimbursement, for example where the employer tracks mileage to calculate the amount due to the employee for gas or other costs of using the vehicle rather than to track the employee’s whereabouts.

Although prior versions of the bill would have imposed criminal penalties for knowingly using a tracking device without first providing written notice to the employee, as passed the new law subjects employers only to civil penalties of up to $1,000 for the first violation and $2,500 for each subsequent violation.

All New Jersey employers should examine their policies in light of this new legislation and ensure that they are providing notice as required where they are engaging in tracking employees. As the new law does not require the Department of Labor & Workforce to issue a model notice or include any direction to employers on how notice must be provided, we recommend consulting with counsel on how best to draft and distribute the notice to your employees.

If you have any questions relating to this new law, please feel free to reach out to the NFC Attorney with whom you typically work or call us at 973.665.9100.


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