Employee GPS Tracking: Challenges and Best Practices

Consider the case of Myrna Arias. Her employer, Intermex Wire Transfer, afforded her a company-issued smartphone so she could receive calls from clients at any hour. She was asked to keep the device on at all times. She agreed to be monitored during working hours, but there was no way for her to specifically turn off the GPS tracking.

Her manager explicitly mentioned that she was indeed being monitored 24/7. When she uninstalled the GPS tracking ability in her device in disagreement of being tracked after working hours, she was fired. She then filed a lawsuit on several cause of actions, among them wrongful termination, invasion of privacy, and unfair business practices, seeking over US$500,000 in damages for lost income.

It is all too common or easy, unfortunately, for employers to overstep their bounds in employee monitoring.

Technology is redefining the many ways that employees are being monitored. Employers can now monitor an employee’s work email, keystrokes, internet searches, chats, phone calls, tone of voice, length of conversation, movements via video, log time, location, etc. – the list goes on. Information can now be collected and analyzed more easily and discreetly. Most recently, even big data analytics has permeated the workspace as employers seek to better manage costs and mitigate work related risks by anticipating predicted behaviors.

Out of the many ways to monitor employees one of the more complex ways is the use of GPS to track their locations. Tracking an employees’ location is a step towards obtaining employees behavioral data. From movement and location analysis a manager can extract secondary information about the particular employee: where the employee went, with whom, for how long, how frequently, etc. More sinisterly, without proper regulation an irresponsible employer may be tempted to pry into the private lives of employees outside of working hours, crossing the line into voyeurism - knowing further which church the employee goes to, where the employee eats, which political party the employee supports, which pubs the employee frequents, etc. Location tracking can thus be personally highly intrusive by nature.

 While monitoring employees at the workplace is common and has been around for a while, let’s face it no one likes being monitored. But in this day and age of the Internet of Things, Artificial Intelligence, drone deliveries, and gadget loving Gen-Ys and Zs, GPS tracking ability is readily available on most digital devices, most notably on smartphones. In fact, it is already a default feature because so many tools are dependent on it. So, like it or not, the applications of GPS tracking technology will continue to grow. According to an Aberdeen Group study done in 2014, 54 percent of companies with field operations are already tracking their employees that are out of the office, in real time, up from 37 percent in 2012¹. The trend is that modern business operations will inevitably involve some job management platforms, and companies fixated in key performance matrices and obsessed with monitoring, data collection and analysis are bucking that trend as they too modernize to compete. And this, understandably, is causing a classic fundamental conflict: the employers’ right to monitor vs the employees’ right to privacy.

This now beckons the question: Where to draw the line? And if monitoring employees is an inevitable practice, becoming ever more commonplace, how best then to implement the monitoring in a less conflicting way? In the context of GPS tracking there are increasing legal guidelines being established by legal case precedents, and guided by best practices, that employers can follow to significantly lower legal risks and foster a trusting relationship with employees. On the other hand, employees can deter employer abuse by educating themselves on how the GPS tracking technology works, by understanding how the law around such implementation works, and by understanding the rationale and benefits behind implementing such monitoring.

Firstly, this article will briefly explain how GPS is currently being used and why it is popular with businesses. Then, the article discusses the core challenges of implementation, the legality and prevalent parameter of laws around it. Lastly, the article goes through a compiled list of best practices that can help employers and employees alike in implementing a successful monitoring policy.

Current State of GPS

GPS stands for Global Positioning System. As the name suggests, it simply is a global geolocation system. It functions to locate the receiver (the object being tracked) on earth. GPS is not the only geolocation system in the world. GPS is only the American version, and is also known as ‘Navstar’. In fact, Russia has got ‘The Russian Global navigation Satellite System’ (GLONASS), Europe has got ‘Galileo’ and recently, China has got ‘BeiDou Navigation Satelite System’. Japan is developing its own ‘Quasi-Zenith Satellite System’. India too is developing its own ‘Indian Regional Navigation Satellite System’ (NAVIC).

Briefly, GPS works by the process of trilateration of satellites, where differences in the time it takes radio signals to travel between the receiver and each of at least three other visible satellites are calculated to determine the location, speed and direction of the receiver on earth. Currently, there are at least 24 satellites orbiting around the earth, each making two complete orbits per day, to support this process.

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How GPS Works

How is GPS used in business?

In the business world, GPS is commonly used and best utilized in industries that heavily involve outdoor field operation, among others in: construction, oil and gas, mining, courier and delivery, taxi, fleet leasing, field services (field sales promoters, healthcare providers, etc.), utilities, food and beverage, landscaping, plumbing, and emergency and repair services.

Traditional GPS tracking services companies provide tracking services with the hardware. Traditional tracking hardware usually consists of small receivers that can be installed in any assets without a fuss. The hardware may also be professional industrial grade handheld devices meant for human assets. The professional handheld devices usually come with better connectivity options design for use in tough rugged environment, for example in mining and oil and gas.  

GPS tracking are increasingly available as applications on smartphones, on SaaS (Software as a service) subscription model – per user, per month. These applications can simply be downloaded and used, in some cases without contract.  Trackimo for example offer the hardware as well as the software accessible on smartphones.

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Trackimo tracking devices

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Trackimo software on smart devices

Most GPS tracking apps on smartphones and traditional devices alike offer basic geolocation features like live-tracking, geo-fencing, time clocks with GPS stamping, attendance taking, accident tracking, roadside assistance, anti-theft service (Some feature can also automatically shut off or auto-lock vehicles), etc. An increasingly popular feature is geo-fencing. Geo-fencing technology allows employers to create a ‘virtual fence’ along a predefined geographic area, where the employer can monitor by alerts via push notification SMS or e-mail when certain assets enter or exit the perimeter. It can track deviation of assets from the expected area of dispatch, without too laboriously tracking it in real time, around the clock. An example is the Geo-fencing feature on Netcorp GPS.

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Multilevel Geo-fencing by Netcorp GPS

On top of these geolocation related features, many applications and traditional handheld devices allow backend integration with other business functions. For example, to improve workflow, many GPS tracking devices comes with some complementary features such as dispatching tools, scheduling tools, mobile forms, barcode scanning, picture and signature capture – for proof of delivery, formula field for more accurate billing, task lists, digital fill-in forms, time sheet actions and even point-of-sales payment gateways. These features are usually charged as add-on services, though many are also in-built as default.

In fact, many applications, like Hubstaff, are first of all applications for mobile job management solutions that include integrated feature like payroll, budget and time limits, automatic account reporting (Quickbooks), screenshots, idle time control, attendance scheduling, payment tools (Paypal, Payoneer, etc.), CRM, help-desk, salesforce, etc. – rather than purely a tracking application. Hubstaff aims to be a one-stop-shop.

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Hubstaff seeks to be a one-stop-shop for mobile job management

Some GPS tracking systems are also oriented more towards a certain industry. Minetrack for example focuses on mining. But more than just GPS location tracking, MineTrack can monitor in real-time the equipment status, driver behavior, fuel consumption, unauthorized stops, load status and counts, cycle time and so on.

Benefits of GPS tracking

Businesses use GPS tracking to increase efficiency and productivity, hence improving profitability. It can also help improve accountability, ensure legal and policy compliance, and for safety in field operations, etc.

Productivity and efficiency: lower cost, increased profitability

It is not difficult to see how employee GPS tracking features can help businesses increase efficiency and thus productivity and cost savings. In a simple trucking fleet management business setting, managers can readily see where every truck is. When there is a job order, the closest truck can be dispatched to the job, even on ad-hoc basis. Thereafter, everything is done digitally, from giving the customers digital forms and papers to sign, to billing delivery charges in confidence and accurately, 

to processing payments. This streamlines many processes for the employer, the employee and the clients. There are no more manual backlogs with illegible hardcopy scribbles here and there to worry with. It also saves on fuel costs and phone bills (on incessant calls to update completion of tasks all the time). Besides that, managers can also readily see how punctual the trucks are, and how much they deviate from scheduled routes, in order to assess the productivity of drivers, and to act accordingly.

An example of a company that successfully benefited from the implementation of GPS tracking on its fleet is UPS, the American courier company. In 2009, UPS decided to track its delivery trucks by installing GPS tracking devices along with 200 different sensors on its trucks. The sensors monitor all aspects of driving behavior. From the data analysis, they were able to determine the number of deliveries they can fit into a day’s work. With the information, UPS was able to streamline its business operation, within four years. The company was able to handle 1.4million additional packages using 1,000 fewer drivers. This was a tremendous improvement in efficiency and productivity².

Indeed, many fleets are now managed with GPS tracking. With the rise of e-commerce, the e-commerce ‘last mile’ delivery and fulfilment solution is now the best practice on efficient delivery. Smartphone applications like myGeoTracking use real-time location and communication platforms to optimize and streamline fleet operation, backed by real data analytics identifying potential bottlenecks in the business operation and supply chain. Last mile delivery is only possible with the help of GPS technology.

More recently, the GPS tracking technology is used in more interesting settings to increase efficiency and productivity: GPS tracking in the office setting. Applications like Staffmap enable managers to access the floor plan and locate where every staff is. In addition, the app can manage hot-desking (shared desks) and arrange for an assigned seating plan in specific meetings. It can also be used to manage office equipment.   

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Staffmap uniquely manage employees’ positions in the office

Another interesting setting is in the hospital. Where every second counts, efficiency and urgency in attending to patients can be matters of life and death. GPS tracking of nurses, usually with trackable badges, has been gaining popularity with hospitals. Knowing the location of a nurse, via real time tracking or geo-fencing, enables administrators to contact the particular nurse nearest to emergencies to attend to it. This improves nursing efficiency and offer patients a faster service. Also, healthcare providers are also equipping GPS tracking devices to their on-field nurses that go to homes to provide services. With the device, the nurses can schedule, generate reports, etc.   

Accountability, Compliance and Misconduct

GPS and time tracking can improve employees’ accountability, improve compliance with the law, and catch any misconduct. With GPS tracking, employers can check whether their employees are where and when they claim they are. GPS tracking can also be used to check travel records to obtain the right reimbursements against travel budgets and mileage claims. Applications like Timr records work related trips by logging in vehicle journeys. Employers can also verify employee attendances at meetings, seminars and training events.

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Timr keep tracks of business trips for easy reimbursements

Accordingly, GPS tracking records can be a credible source of evidence to catch employees’ misconducts and those who do not abide by company policies. For example, GPS tracking can track the speed at which the employee is driving during delivery against the company speed limit requirements. All these help employers keep the employees accountable, with evidences to back up claims to avoid unnecessary disputes.

Employee GPS tracking can also be used to duly comply with certain industrial related requirements, and easily generate a template proof for the purpose. Some applications like Labor Sync can preset parameters that ensure usage compatibility with State and Federal Government and with various agencies. Applications like Teletrac Navman provide a simple platform for drivers to complete and submit a daily pre-trip and post-trip car inspection report, the Driver Vehicle Inspection Reports (DVIR), to their managers, as per required by the Department of Transportation (DOT) in order to track safety issues. Teletrac Navman also provides a platform to track total interstate and intrastate mileage of the fleet in order to comply with requirements of International Fuel Tax Agreement (IFTA) and DOT.

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Laborsync is preset to ensure compliance with several regulation requirements

Safety and Miscellaneous

Employee GPS tracking can be well-intentioned. It can be implemented for safety purposes. Oil companies with remote assets for example track their oil field inspectors working in remote areas for safety reasons. In Canada, oil sand workers and oil field inspectors are equipped with GPS tracking to record their activities partly to collect data but more importantly for safety reasons.

Employers can also use apps like Vismo to assist employees in dire situations. Vismo allows for assistance crisis management. The Vismo platform can locate employees worldwide and view their historical trails. Some of the devices they use have extra signals and a longer battery life. In the event of a crisis, the Vismo app will notify employers of their employees and can stay touch with them via SMS push notifications. This could be useful in Tsunami and earthquake prone regions, in dangerous locations during special remote missions – especially in times of terrorism.

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Vismo panic button is accessible on wearables like Apple Watch.

Challenge: Employee pushback on matters of trust and privacy issue

Employee monitoring can be as intrusive as the monitoring is set to be. As mentioned, if employers want to track the employees’ working emails, Google searches, conversations – they can, and legally at the workplace. Now employers can even track the well-being of employees. According to a Popular Science article entitled ‘Companies Are Using Big Data to Track Employee Health and Pregnancies’³, some employers are using prescription data and medical claims to monitor the health and pregnancy of their employees, with the intention to cut down healthcare costs. Even if the employees are willing, this must have been extremely intrusive.

Understandably, implementing GPS tracking in employees will face some problems of employee pushback. Tracking employees’ location is a very sensitive topic because it veered towards invasion of privacy.  It is human nature to want to be free of constant judgement, removed from constant pressure of the looking eyes. After all, employees are human being with private lives and come with humanly baggage of secrets to hide, with real emotions and with differing habits and preferences. Certainly, the thoughts of being monitored for so many hours every single working day can make any employee cringe, especially if the boss is fierce and the stake of losing the job is high.

Furthermore, GPS tracking can sometimes be misconstrued as an offensive message of an employer that lacks trust in its employees. If unmanaged, it can lead to an uncomfortable relationship between employer and employee, and this could severely impact employee morale in a negative way. Employees would then resist being tracked even more. And this can be a challenge for employers seeking to implement such monitoring policies especially for the very first time. It can be a very stressful and counter-productive process for both the employers and employees.

A breach of privacy may also lead to discriminatory practices. An irresponsible management that knows the lifestyle and preferences of its employee risks discriminating against that particular employee in terms of religions, sexual orientation, habits, etc.

The law steps in

What does the law say about the legality of GPS tracking on employees? What are the thresholds that separate legal from illegal practice of employee GPS tracking?

Generally, it is rather established that employee monitoring at work during working hours is completely legal and common. In Australia, China, Indonesia, the US and most European countries, it is generally legal to monitor employees use of employers’ properties, including computers, laptops, mobile phones, Internet, working emails, provided the employees are informed about it. But some country would require employers to take further steps before implementation. For example, in Indonesia, prior to implementation, employers must obtain an ‘Electronic certificate’ from the Ministry of Communication. They must also ensure availability of data for audit. In Europe, employers are required to follow through on rules of monitoring to ensure among others necessity, transparency, legitimacy, proportionality, accuracy and security⁴.

GPS tracking is deemed by many courts to be an acceptable form of monitoring. Case laws demonstrate that there are two certain legal parameter guidelines that wise employers, at least in common law countries, ought to follow on what, when and how the GPS surveillance can be done:

Firstly, GPS tracking can be done on employees provided there is a legitimate business purpose and circumstances to do so. Essentially, any form of tracking must be relevant and justifiable to work related activities. For example, it is harder to justify tracking an office accountant than it is tracking a door-to-door salesman.

Secondly, GPS tracking should only be done during working hours. Most employees would understand and accept that they may be monitored during working hours. After all, they are supposed to be working. So if a delivery man’s shift is the odd hour works in the night, then that will be his working hour and it is fair game that he is tracked only during that shift. It is harder to justify any form of monitoring beyond a specified and agreed working hours.

Using Employer-owned vs Employee-owned assets

What is known is that it is generally acceptable to monitor employees on employer-owned assets, though it does not give the employer a blank-check right to monitor – especially if there is no legitimate business purpose and if the tracking is done outside working hours. In an employee-owned asset, the same two legal parameter guidelines apply, but additionally, employers must notify and seek the consent of the employee being tracked.

Employer-owned asset

In Elgin v. Coco-Cola Bottling Co (2005), the employer attached a GPS device on the vehicle of the suspected employee in order to investigate missing cash at their vending machines. The employee was found innocent in the end. In the course of it, he found out about the GPS tracking and sued the employer for ‘intrusion of seclusion’, essentially a tort of invasion of privacy. The court ruled that the claim is rejected because the vehicle was owned by the employer and that the ‘intrusion’ was only on the location of the vehicle, which is owned by the company. In essence, employees using company assets should expect to be monitored and should have no expectation of privacy in using any of them. The rationale goes like this: if the workplace is in a company vehicle, it is not anymore different than it is in a company own office premise using company owned equipment. Employers are also allowed to install GPS tracking device in any employer-owned vehicle as they like to. But it is advisable employee should be given notice that GPS tracking is being used in that business operation.

However, the case of Arias vs Intermex Wire Transfer (2015) shows that even for employer-owned devices, in this case a smartphone, it does not give the employer a blank check right to monitor however they want. If there is no legitimate business purpose and if the tracking is done 24/7 even during after working hours, the employer will still be liable for suit.

The case involves a Californian sales employee who claimed to be under surveillance even during non-working hour. The plaintiff, Myrna Arias, carries a company-issued smartphone and agreed to be monitored, but only during working hours. But because she was in sales, and had to answer calls from clients, so she was asked to keep the device on all the time, which meant she had to keep the GPS tracker on all the time as well. The Streetsmart (Xora) application she was using had a clock in and out feature, but there was no way to specifically turn off the GPS tracking. Furthermore, her manager explicitly mentioned that she was indeed monitored 24/7. When she finally uninstalled the GPS tracking capability in her device altogether, in disagreement over her being tracked after working hours, she was fired. She then filed a lawsuit on several cause of actions, among them wrongful termination, invasion of privacy, and unfair business practices, seeking over US$500,000 in damages for lost income.

Though the case eventually settled out of court without a court ruling per se, it gave insights into what employers should look out for when issuing company devices, or personal device for that matter, that are being tracked: employees should not be required to leave their GPS tracking turned on at all times 24/7 and should not be monitored on any off-duty activities during those non-working hours. Otherwise, as the court summon reads: ‘This intrusion would be highly offensive to a reasonable person’⁵.

Employee-owned assets

Meanwhile, for employee-owned assets like personal vehicles used for company business, employers must obtain consent from the employee to install GPS tracking. This was highlighted in Cunningham v. New York State Dept. of Labor (2013), a New York case. The state department was investigating against a suspected state employee on account of falsification of time records and voucher information. In its investigation, the department installed a GPS tracking device onto the car of the employee to gather information, and they put him under surveillance 24/7. The employee was later discharged. He found out about the GPS tracking during the investigation, and filed a suit. In essence, the court ruled that installing a GPS device on an employee owned vehicle discreetly for purpose other than work related was unreasonable. Further, the court also ruled that monitoring after work hours was unreasonable and unconstitutional.

So, GPS tracking is an acceptable form of monitoring but there are limits. What is clear is that implementing GPS tracking requires a legitimate business purpose, and tracking can only be during working hour and in most cases, especially for tracking in employee-owned assets, it is a must to seek the consent of the employee tracked. Knowing these limits help employers to lower legal risks.  

Best practices to implement employee GPS tracking

There are certain measures that both employees and employers can take to better implement GPS tracking, particularly to reduce the stress and discomfort that it gives employees. The bottom-line: always be reasonable.

Suggestions for Employees

• To begin with, employees need to understand and realize that monitoring at work and during on-duty working hours is generally an accepted practice, and has been around for a long time in companies around the world. So, they have to accept some form of monitoring, especially with advance technology enabling more methods to do so. Consequently, there will always be some level of discomfort being monitored. The question is only a matter of scope. So, as long as the monitoring is legal and does not permeate into the personal sphere, it is still reasonable and employee should factor in any related stress as part of the job.
• To prevent employer abuses, in the context of GPS technology, the best thing an employee can do for themselves is to get educated on how the GPS technology works and what the local law is around GPS tracking. They can seek support of labor union and start an initiative on it collectively, so it feels less intimidating. Ignorant employees tend to be more susceptible to abuse as they are unaware of their rights and what the issues are.
  
  
• Employees should read policies that they sign carefully especially on when the monitoring takes effect, and ask questions when unsure. In any disagreements, employees should remain calm, cooperative and constructive. Any feedbacks communication should be followed up in formal written records. It is important to build trust with the employers, that any resistance to disagreements led by the employee is not a resistance for the sake of resisting, but more for a constructive and acceptable outcome. In situations where employees are calm, reasonable and constructive, most reasonable employers would reciprocate and take the employees’ opinions into account.

Suggestions for Employers

• Employers considering GPS tracking on employees should learn about the law for such implementation. Always consult a lawyer to check with GPS tracking against the local privacy law, labor law, tort law and transportation law.
  
  
• Any employers thinking of implementing the GPS tracking should firstly establish business purposes to do so, either to increase operational efficiency, to improve customer service, to improve safety, etc. And it should be one that is demonstrable so that employees can better understand and accept it. Employers should only consider engaging in monitoring if the business needs outweighs the risks and costs.
  
  
• Have a good GPS tracking policy that complies with the relevant local law. Consult a lawyer to draft a good GPS tracking policy. A good policy should be clear on the onset. The policy should state clearly on the nature of tracking, on what the business purpose is, what the scope on time and period of tracking is, and whether it is a one–off, intermittent or continuous, etc. practice. The policy must explain how the data will be used. It is also advisable to put upfront the consequences of turning off the GPS tracking. Make the policy readily available for reference to existing employee and to new-hires before they are hired.
  
  
• If the GPS tracking involves using employee-owned assets, prepare a Bring Your Own Device (BYOD) policy that seeks consent of the employee to use their personal device and that states the terms of monitoring. Always choose the least and least intrusive approach to track that is just sufficient for the business purpose.
  
  
• Even if the policy is legal, it is important to avoid overzealousness on tracking the employees. Managers ought to be told not to overuse it. Employers must maintain a sense of trust that the system is not being abused for reasons other than conducting the business.
  
  
• In addition, such policies must be communicated clearly between the employer and employees. Employees should be given notice when the policy on the particular employee shall take effect. Set aside a grace period notice period. In Australia, any notice to implement must be given 14 days in advance, unless the employee agrees to a lesser period⁶. Emails notice and email confirmation of agreement are generally accepted as a valid form of notification. In the end, the employee must have knowledge of it, and must be a willing party to the agreement. There should be a notice on the asset under surveillance stating that the employee vehicle is under surveillance. Any employee asked to install devices to monitor another employee should be given instructions to do so in writing by the management to absolve the person from being liable.
  
  
• Most importantly, the employers need to ensure employees are receptive being tracked with GPS. After all, successful implementations require the cooperation of happy groups of employees and worker unions. It is better to be upfront about staff monitoring than to be discreet, though at the same time employers should remain empathic with the discomfort that monitoring imposes on the employees. Employers need to stay credible and build the trust. Employers should welcome questions on how the employer will track them. Employers should offer alternative solutions should their first proposals are met with heavy resistance.
  
  
• Employers can exercise to be more inclusive by explaining the commercial benefit of monitoring in general for the company and even for themselves. Hubstaff suggested some of these ideas. For example, with monitoring, employees would not need to submit tedious daily or weekly reports manually. Furthermore, employees can get objective feedbacks on their work habits which can help them become more focused and productive. Automatic records also mean that employees can get paid more accurately, avoiding unnecessary disputes. And ironically, they will be more relaxed, and would not feel like the employer is always pushing and intruding for updates all the time. As for GPS tracking for example, employees on the roads can feel better assured that if they get lost, of if their car broke down, or if they met with an accident, they can feel better knowing that they can access the employers’ support readily.

Use GPS tracking devices with the right feature for the business operation, and train the employees to be familiar with it. Use automation to reduce risk of stepping out of compliance. For example, TSheets turns off GPS automatically when employee clocks out. Or, leave some power at the hands of the employees. This means let employee be in control of some aspects of privacy setting especially for after working hours.

Make sure employees are well trained on the GPS tracking devices so as not to cause miscommunication and situations of mistrusts.

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Tsheets can automatically turn off GPS when the employee clocks out

Finally, make sure that any GPS-related data are stored securely. Gleeo tracking offers security and privacy by providing end-to-end encryption to protect unauthorized access. Both its Android application and its web application upload sensitive data in encrypted form to the cloud in AES-256 Bit. Give varying levels of access to staff details via project security groups to protect sensitive information.

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Gleeo provides secure privacy with encryption

Conclusion

In summary, It is clear that GPS tracking on employee is generally acceptable during working hours at the work place or when the employee is using employer-owned assets – provided that there is a legitimate business purpose to do so and that the monitoring is conducted only during working hours. Employers should follow the best practices to lower legal risk. A successful implementation of employee GPS tracking requires all parties should be reasonable. Employers ought to understand from the employees’ perspectives, vice versa – and sincerely accommodate each party’s interest and concerns. Wise employers understand that the reception of the employees on the policy is important. In this regard, employers should treat employees more inclusively and show them that with the increased profitability, it can also make their lives better, and a wise employer would ensure all employees get to enjoy the fruits of the labor – perhaps bonuses as incentives for higher productivity.