February 2022: New Jersey Governor Signs Law Requiring a Written Notice for Tracked Company Vehicles

Update Applicable to:
All employers with employees operated vehicles in the state of New Jersey

What happened?
On January 18, 2022, Governor Murphy signed into law Assembly Bill No. 3950 (AB 3950) that will affect businesses that have employee-operated vehicles.

What are the details?
Effective April 18, 2022, employers will be required to provide their employees a written notice before using tracking devices on vehicles operated by employees.

The law 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.” Devices “used for the purpose of documenting employee expense reimbursement” are excluded from the definition of “tracking device.” Notably, the law applies regardless of whether the employee uses a company-owned vehicle or the employee’s personal vehicle.

The New Jersey law expressly states that it does not “supersede regulations governing interstate commerce, including but not limited to, the usage of electronic communications devices as mandated by the Federal Motor Carrier Safety Administration.”

An employer that knowingly uses a tracking device on an employee-operated vehicle without providing written notice to the employee will be subject to a civil penalty in an amount not to exceed $1,000 for the first violation and not to exceed $2,500 for each subsequent violation.

For more information, please see the links below:

Assembly Bill No. 3950

Article 1

What do employers need to do?
Employers should review the links provided above and prepare to draft written notices to provide to all current and new employees once the law is in effect.