Is Vehicle Tracking Legal? A Guide for Business and Fleet Leaders

For businesses that rely on their vehicles, the use of GPS tracking devices is increasingly common, and it’s no surprise. Fleet tracking helps protect your valuable assets and provides a wealth of data to optimize your operations. At the beginning of this decade, studies found that 50 to 60% of organizations with at least one company vehicle had deployed vehicle tracking technologies. Since then, the rapid growth of the vehicle tracking device market suggests these figures will continue to rise. 

Yet that leaves millions of unprotected service trucks, delivery vans, loaner cars, and other company vehicles. Many business owners and fleet leaders hesitate because they are unsure whether vehicle tracking is legal in the United States, particularly when employees are involved.

Clearly, vehicle tracking technologies work well for many organizations, but critical questions remain. Is vehicle tracking legal for employers, and what are the risks associated with getting it wrong?

In short, vehicle tracking is generally legal for businesses in the United States when it is conducted for legitimate business purposes, involves company owned vehicles, and includes proper employee disclosure and consent. Legal risk increases when tracking extends into personal vehicles, off hours monitoring, or when employees are not informed.

Below is a practical overview of the state and federal regulations that affect employer vehicle tracking, along with guidance on how businesses can remain compliant through transparency and consent.

What Is Vehicle Tracking and Why Is It Used?

Vehicle tracking is the practice of installing a GPS device that communicates with satellites to determine location, speed, and direction. This data is then transmitted, usually via cellular networks, to a cloud server. Fleet management software interprets and presents data, giving businesses a real-time view of their vehicles, insight into their usage, and historical reporting capabilities.

To dispel a common misconception, businesses don’t adopt vehicle tracking technology to spy on employees. Instead, they implement tracking to enjoy these benefits:

• Enhanced safety: Tracking systems can alert to hard braking, rapid acceleration, and other driving behaviors, so that you can address them with your team.
• Accountability: By verifying client visits, routes driven, and time spent on site, businesses ensure accurate billing and payroll.
• Operational efficiency: Optimizing routes, reducing idle time, and streamlining maintenance schedules make for lean operations and cost reductions.
• Asset recovery and security: Real-time tracking can help recover stolen vehicles or monitor unauthorized usage.

Is Vehicle Tracking Legal? Key Legal Considerations for Employers

In the United States, vehicle tracking is generally legal for private businesses that own the vehicles being monitored. However, legality depends on how tracking is implemented, how transparent the employer is, and which state laws apply.

There is no single federal statute that fully governs employer vehicle tracking. Instead, legality is shaped by a combination of federal privacy principles, state specific statutes, and court decisions. Businesses operating in multiple states must evaluate compliance based on the most restrictive jurisdiction in which they operate.

While the technology itself is neutral, legal risk arises from how it is used. In most cases, the lawfulness of vehicle tracking depends on who is being monitored, when monitoring occurs, whether the vehicle is company owned or personal, and whether proper disclosure and consent are in place.

Because employer vehicle tracking is governed primarily at the state level, businesses must navigate a patchwork of privacy rights, state specific statutes, and common law precedents. The following four issues form the core of most vehicle tracking legal disputes.

Consent and Disclosure

The golden rule of legal GPS usage in a business setting is transparency. Regardless of the laws in your state, monitoring employees without their knowledge is the fastest route to potential trouble. Most legal challenges arise when an employee discovers a tracker they were unaware of. 

Best practice dictates that employers disclose the existence of tracking devices, explain what data is collected, define how the data will be used, and document employee acknowledgment.

The Expectation of Privacy: Company vs. Personal Vehicles

The US Constitution doesn’t explicitly grant a right to privacy. However, cases before the US Supreme Court have led legal scholars to conclude that the Fourth, Fifth, and Fourteenth Amendments imply that such a right does exist.

Those rulings primarily concern private citizens and the government. The relationship between employers and employees is typically defined by state laws, which can vary widely. When it comes to privacy and automobiles, case law tends to fall into two categories: company-owned and personal vehicles.

When an employee drives a business owned vehicle, courts generally recognize that the company has the right to monitor its own property during work hours for legitimate business purposes. However, even in company-owned cars, continuous monitoring during what might be considered personal time, such as weekends, evenings, or holidays, can be problematic without employee consent.

When employees use their personal cars for work, their expectation of privacy is much higher. Tracking a personal vehicle requires explicit, written consent and should ideally be limited to working hours or specific business trips.

It is important to distinguish between tracking a vehicle and tracking an employee. In most cases, employers are legally monitoring company property rather than the individual. Legal exposure increases when monitoring practices are perceived as targeting the employee’s private life rather than protecting business assets.

Federal vs. State Law

Some legal scholars argue that federal laws such as the Electronic Communications Privacy Act (ECPA) govern employee tracking. In contrast, others note that these statutes were written before the modern GPS era and would be imperfectly applied to vehicle-tracking issues.

In practice, the most pertinent regulations are at the state level. In some states, including California, Connecticut, and Delaware, GPS tracking laws require explicit notice or consent for employee monitoring. Other states have looser statutes but still recognize common-law torts such as "intrusion upon seclusion."

For businesses operating across state lines, the safest approach is to design vehicle tracking policies that comply with the strictest state privacy requirements in any jurisdiction where vehicles are deployed.

Maintaining Privacy Boundaries (The Off-Hours Issue)

It can be a valuable benefit when an employee is permitted to use a company vehicle for personal purposes. However, it can quickly become contentious if the car is fitted with a tracker. Does the employer’s right to know where their property is mean they also have the right to see where the employee goes on Saturday night?

In most business contexts, the answer is no. Collecting location data during an employee’s private time can be viewed as an invasion of privacy. Laws like the California Consumer Privacy Act (CCPA) recognize the right to limit the use of sensitive personal data, including geolocation data.

Therefore, companies that provide company vehicles for both business and personal use must implement technologies and policies that cease active tracking or mask location data once the employee is off the clock.

GPS Tracking for Employees: What’s Permissible?

Given the legal framework discussed so far, it’s not surprising that HR and risk management teams like to codify employee vehicle tracking policies in writing. Clearly defined policies grounded in employee consent help prevent lawsuits and improve morale.

In most jurisdictions, the following conditions form a legally defensible foundation for an employer vehicle tracking policy:

• All tracking is conducted for legitimate business purposes, such as securing assets, improving public safety, and streamlining operations.
• Tracking occurs during defined working hours and work-related activities.
• The employee is informed of the tracking.
• The vehicle belongs to the company, even if the employee can use it for personal matters.

Best Practices for Employee Relations

Legal fleet compliance is one thing, but employees should also feel comfortable with the tracking. In addition to being legally valid, policies should be transparent and ethical. Follow these best practices to help employees feel comfortable with monitoring:

• Rely on written policies instead of handshakes and verbal communications. Include the policies in the employee handbook for easy reference.
• Require employees to sign a consent document confirming that they have read and understood the tracking policy, and that their consent is a condition of vehicle use.
• Ensure the policy defines what data is collected, how long it is stored, who has access to it, and how it is used. Here’s an example: Data may be used for disciplinary action regarding safety violations.

Vehicle Tracking Laws by Use Case

While the law applies equally across industries, the nuances of some business models change how you should approach GPS tracking. Consider these use cases:

Commercial Fleets and Delivery Services

If you’re in the trucking or delivery sectors, GPS trackers are essentially mandated, thanks to Department of Transportation (DOT) rules for electronic logging for hours of service. DOT requires electronic logging devices (ELDs) for most vehicles over 10,000 pounds. This means that even some plumbing, HVAC, and other service trucks will have to be outfitted with ELDs, which inherently involve location tracking.

So for many commercial fleets, the legal focus is less on whether you can track and more on ensuring you use the tracking data for safety and efficiency purposes.

Rental and Car-Sharing Services

Car-sharing platforms like Turo and traditional rental agencies typically include the right to track in their contracts. Renters consent to tracking for asset recovery, mileage verification, and policy enforcement.

However, you should ensure the contracts make it clear that the tracking devices are installed for those purposes. Adjust contract language to fit any applicable privacy regulations in your state.

Families Tracking Teen or Elderly Drivers

Businesses tracking their own vehicles driven by employees is a different dynamic from a domestic setting. Parents generally have the legal right to track vehicles driven by their minor children without consent, as they are responsible for the minor’s safety.

Tracking elderly parents or other adult family members typically requires consent. However, exceptions exist under court-ordered guardianships and conservatorships.

Law Enforcement Tracking vs. Private Businesses

GPS trackers can aid police investigations and help recover stolen property. However, law enforcement tracking is a complex legal issue. Whereas private businesses rely on ownership rights and employee consent to track vehicles, law enforcement agencies are restrained by multiple case precedents.

In the landmark 2012 Supreme Court case United States v. Jones, the court held that law enforcement's attachment of a GPS device to a vehicle constitutes a search. This triggers the Fourth Amendment, which typically requires a warrant. State laws further complicate the use of tracking technologies in law enforcement.

Vehicle Tracking Legal Compliance Checklist for Businesses

To reduce legal risk, businesses implementing GPS tracking should ensure that the following safeguards are in place:

• A written vehicle tracking policy is in place
• Employees receive advance written notice
• Written consent is obtained where required by state law
• Tracking is limited to legitimate business purposes
• Off hours monitoring is disabled or clearly disclosed
• Data retention policies are documented
• Multi state operations comply with the strictest applicable state law

Compliance Tips for Fleet Managers and Business Owners

Depending on your industry, there may be significant legal and regulatory considerations when implementing tracking in your business. When implemented correctly, vehicle tracking and fleet compliance can reinforce one another. Here are a few compliance tips to help you get started:

Create a GPS tracking policy. Be transparent about the policy’s purpose and scope. List the data your trackers collect, and how your team will handle and use that information. Make sure there are no surprises by clearly stating how you will use data in performance reviews or, if at all, in disciplinary matters.

Provide training: Employees should only sign the policy after a thorough training session. Frame the training around how tracking benefits employees, proof of service in client disputes, automated mileage logging for reimbursement, increased safety, and other advantages.

Review state-specific laws: If your drivers travel across state lines, don’t assume your policy is universally compliant. States such as California, Illinois, and New York continue to update their privacy statutes. Consult with labor attorneys who specialize in digital privacy.

Choose transparent technology: You can’t have a transparent implementation without the right GPS tracker. For example, Bouncie plugs into the OBD-II port under the dashboard, making it more visible than battery powered or hardwired devices.

Is Vehicle Tracking Legal? Frequently Asked Questions for Employers

Legal issues can be endlessly complex. To help you understand the implications of vehicle tracking at your business, here are answers to some frequently asked questions:

Is it legal to track an employee’s car if they’re using it for work?
Yes, but only during working hours and for business purposes. Because the employee owns the vehicle, their expectation of privacy is high. You absolutely need written consent, and you should use technology that allows the driver to disable tracking during personal use.

Can I use GPS tracking without informing the driver?
Although some states may technically allow it under narrow circumstances, covert tracking poses a significant legal risk and is guaranteed to destroy employee trust. Choose transparency instead.

How does Bouncie help with compliance and transparency?
Bouncie plugs directly into the vehicle’s OBD-II port, making it visible to the driver. In addition, the Bouncie platform provides clear data that can be shared with drivers to foster a culture of collaborative safety.

Stay Smart, Stay Legal

For businesses that rely on vehicles to generate revenue, manage field teams, or deliver services, the benefits of GPS tracking are well established. For most businesses, the question is no longer whether vehicle tracking is legal in principle, but how to implement it responsibly in compliance with state and federal laws.

To remain compliant, businesses should establish a formal tracking policy, align that policy with applicable state privacy laws, document employee consent where required, and select transparent vehicle tracking technology. Bouncie is a full-featured tracking platform suited for businesses of all sizes, built on transparency. To get started, learn more about how Bouncie supports legal and compliant vehicle tracking for businesses operating in today’s complex regulatory environment.