Federal GPS Tracking Laws for U.S. Employers

ByEric Czerwonka Last Updated
Illustrative image of federal GPS tracking laws for employers

You can prevent time theft, optimize your routes, and keep an accurate record of employee locations/hours spent on customer projects by tracking employees with GPS technology.

GPS tracking works for all types of businesses: track your delivery drivers as they complete their routes, make sure field service employees and construction workers are at the appropriate job sites, or just make sure your employees are at your single-location business — all without being physically present on-site.

However, before you start tracking your employees’ locations, you need to be well-versed in any federal and state GPS tracking laws that apply to employers. Use this guide to ensure you’re in compliance with all federal laws and regulations regarding employee GPS tracking.

Legal Disclaimer: This blog post is for informational purposes only and should not be considered legal advice. Consult an attorney for specific guidance on laws around employee GPS tracking.

Is employee GPS tracking legal?

Yes, business owners generally have the right to monitor their employees’ locations — as long as they comply with federal and state-specific regulations. 

U.S. federal GPS tracking laws

There are currently no federal laws in the United States related to employee GPS tracking. 

The closest thing there is to federal regulation is the Electronic Communications Privacy Act, which “protects wire, oral, and electronic communications while those communications are being made, are in transit, and when they are stored on computers. The Act applies to email, telephone conversations, and data stored electronically.”

However, Title I of the act provides an exception for “operators and service providers for uses in the normal course of employment while engaged in any activity which is a necessary incident to the rendition of his service.”

Given the wording of this exception, employers are allowed to track employees via GPS as long as 1) you’re only tracking them while they’re on the clock and 2) the tracking is necessary for the type of work they’re doing.

GPS tracking laws by state

While federal law offers few protections for employees when it comes to having their locations tracked by their employers, some states have much more stringent laws and regulations.

We strongly recommend that you consult with a legal professional to fully understand the laws related to employee GPS tracking in the states where your business operates. These laws can change rapidly, and it’s difficult to find reliable information about them online.

However, we will provide some examples of state laws for which we were able to find legal documentation. This is by no means a comprehensive list or legal advice; it’s just meant to give you an idea of some of the laws and regulations you may run into.

  • In California, it is illegal to “use an electronic tracking device to determine the location or movement of a person” if that person has not consented to having their location tracked.
  • In Arizona, it is illegal to use a GPS device to surveil a person either “continuously for twelve hours or more or on two or more occasions over a period of time, however short, without authorization.”
  • In Delaware, it is illegal to install “an electronic or mechanical location tracking device in or on a motor vehicle without the consent of the registered owner, lessor or lessee of said vehicle.”

Many other states that regulate employer GPS tracking have similar laws — most of which are focused on prohibiting employee GPS tracking without first getting the employee’s consent.

Best practices for tracking employee locations legally

If you want to make sure you’re covered from a legal and regulatory perspective regardless of where in the U.S. your business operates, here are some general rules to follow:

  • Only track employees during working hours. Make sure the GPS tracking software you use is built for employers. This will ensure that employees’ locations are only tracked while they’re on the clock. Using a free app built for family tracking could put you in violation of some states’ laws because those apps track employees 24/7.
  • Only track company-owned vehicles. If you use hardware for GPS tracking on the vehicles your employees use for work, it can only be installed on company-owned vehicles. GPS tracking of employee-owned vehicles is prohibited in some states.
  • Notify employees that their locations are being tracked. Some states require employers to notify employees that their locations are being tracked. Create a written GPS tracking policy, and make sure to have all of your employees sign it. 

By following these best practices, you will most likely be in compliance with laws and regulations regardless of which state(s) you operate in.

How to track employees’ locations

Generally, employers track employee locations using either a time clock app with GPS, GPS tracking hardware, or a fleet management system.

Using a time clock app with GPS-tracking features, like Buddy Punch, is often the simplest, most affordable, and most accessible way to track employee locations. These apps use the built-in GPS technology on your employees’ mobile phones to provide you with location data.

GPS tracking hardware requires you to purchase GPS tracking devices that are either hardwired into your company vehicles or plugged into an OBD-II port. Then, you download the software that pairs with the devices you installed and use that software to track the locations of your company vehicles.

Fleet management software can use either installed hardware or employees’ mobile devices to track employee and vehicle locations. It’s typically used by transportation, distribution, and logistics companies for location tracking, route optimization, and dispatching.

How to track employee locations using Buddy Punch

Using Buddy Punch is a convenient way to track employees with GPS. It works for all types of businesses, whether you have multiple locations, one location, or an entirely remote workforce.

To use Buddy Punch, your employees download the Buddy Punch app, available both on the App Store (for iOS devices) and Google Play (for Android devices).

Buddy Punch offers the following location-tracking features:

  • Location identification on punch: Employees can clock in/out using their smartphones. When they clock in/out, Buddy Punch captures their location and adds that location to their timesheets.
  • Real-time GPS tracking: Buddy Punch also offers real-time GPS where you can track employees’ locations for the entire time that they’re on the clock.
  • Geofencing: Geofences allow you to create digital radiuses around your locations or job sites. If an employee tries to clock in/out while not within your geofence, Buddy Punch prevents them from doing so and shows them an error stating that they’re not at the right location.

Buddy Punch takes a privacy-first approach to tracking employees with GPS monitoring. Our system will automatically stop tracking employees’ locations when they punch out of their shifts.

This privacy-first approach gives both you and your employees peace of mind. You can rest easy knowing your business is compliant with GPS monitoring regulations, and employees will see they’re not being monitored outside working hours.

Additionally, all of Buddy Punch’s GPS tracking and geofencing features are completely optional. You can make them required for all employees, make them required only for specific employees, make them optional, or turn them off entirely.

Buddy Punch has a 4.8 out of 5-star rating on popular review site G2. Here’s what customers have to say about our GPS tracking features:

  • “Buddy Punch is extremely easy to use and navigate. The mobile app allows employees to clock in at multiple locations but can also show GPS coordinates if you’re questioning an employee’s whereabouts at the time the punch was entered.” Read the full review.
  • “We are a construction company. We have over 20 jobs going at any one time. All the guys can easily punch in and out on their phones. If they are in the field, they use GPS, and we know where they are — at the supply store, on the job site, etc. You can’t lose with this software.” Read the full review.
  • “The GPS tracker is what I love the best since the majority of our employees are out on different locations. I find it nice knowing that I can track the GPS of our employees, and the geofencing is also amazing.” Read the full review.

Buddy Punch has a free 14-day trial — no credit card required. Paid plans start at $3.99 per user per month, plus a $19 base fee.

Want to learn more about Buddy Punch? Start a free trial, watch a recorded demo, or request a personalized demo.