GPS Tracking for Company Vehicles: 5 Requirements to Follow
GPS tracking for company vehicles is legal across the U.S. when your business owns or leases the vehicle, tracks it for a legitimate business reason, and tells drivers in writing before tracking starts. Personal vehicles, off-hours use, and a handful of state statutes add extra steps, so a signed, written policy is the safest foundation.
Below are the five requirements every employer should cover, the state laws that shape them, and a policy checklist you can adapt. This is general information, not legal advice. Have an employment attorney review your final policy, especially if your vehicles operate in more than one state.
What are the 5 basic requirements of GPS tracking for company vehicles?
Own or lease the vehicle, track it only for business reasons, give drivers written notice, get written consent for anything you don’t own, and put it all in a signed policy. Each requirement is explained below.
- Own or lease the vehicle, or get the owner’s consent.
- Track for a legitimate business purpose during work time.
- Give drivers written notice before tracking begins.
- Get written consent before tracking any vehicle you don’t own.
- Document everything in a written policy and control who sees the data.
1. Own or lease the vehicle, or get the owner’s consent
Ownership is the foundation of lawful tracking. Most state tracking laws are written around whether the vehicle’s owner, lessor, or lessee consented to the device. California Penal Code section 637.7, for example, makes it a crime to use an electronic tracking device to determine a person’s location or movement, but the law does not apply when the registered owner, lessor, or lessee of the vehicle has consented to the device.
For leased vehicles, read the lease before installing anything. Hardwiring a tracker into a vehicle you don’t own may require the leasing company’s approval, and some agreements limit aftermarket equipment. Get that approval in writing.
2. Track for a legitimate business purpose during work time
Why you track matters as much as what you track. Common business purposes include route and service verification, theft recovery, maintenance scheduling, safety coaching, and accurate mileage and billing records.
The guiding rule is simple: track property, not people. Using GPS to locate a truck at the end of a shift or confirm a service call is routine fleet management. Using that same data to follow an employee to a restaurant, a doctor’s office, or their home after hours is where employers invite privacy complaints and legal risk.
3. Give drivers written notice before tracking begins
Even where no statute requires it, written notice is one of the most protective steps an employer can take. It sets clear expectations, lowers any expectation of privacy in a work vehicle, and gives you a signed record if a dispute comes up. Deliver notice at hire or before devices are installed, and again whenever the policy changes.
4. Get written consent before tracking any vehicle you don’t own
Personal vehicles are where risk rises sharply. Several states make it a crime to install a tracking device on a vehicle without the owner’s consent, so an employee’s own car should never be tracked without their signed, written consent. Even with consent, limit tracking to work hours and work trips. The same caution applies to independent contractors driving their own vehicles.
If a role needs routine tracking, providing a company vehicle is usually cleaner than tracking a personal car.
5. Document everything in a written policy and control who sees the data
A written company vehicle GPS tracking policy ties the first four requirements together. Have every driver sign it, keep the signed copy on file, and limit location data access to the people who need it. The checklist further down covers what to include.
Is it legal to GPS track company vehicles?
Generally, yes, when your business owns or leases the vehicle. State laws on tracking devices mostly target installing a device on a vehicle owned by someone else or tracking a person without consent, based on the National Conference of State Legislatures’ review of state location tracking statutes. The details vary by state, and these examples matter most to employers:
| State | Statute | What it restricts |
|---|---|---|
| California | Cal. Penal Code § 637.7 | Using an electronic tracking device to determine a person’s location or movement, with exemptions |
| Delaware | 11 Del. C. § 1335(8) | Installing a location tracking device on a motor vehicle without consent of the registered owner, lessor, or lessee |
| Oregon | ORS § 163.715 | Affixing a GPS device to a motor vehicle without the owner’s consent |
| Rhode Island | R.I. Gen. Laws § 11-69-1 | Placing or using a tracking device on a motor vehicle to monitor the operator or occupants without their consent |
| Texas | Tex. Penal Code § 16.06 | Installing a tracking device in a motor vehicle, with exceptions |
| Utah | Utah Code § 76-9-408 | Installing a tracking device on a vehicle owned or leased by another person without permission |
| Wisconsin | Wis. Stat. § 940.315 | Placing a GPS device on a vehicle owned or leased by another person without consent |
Source: National Conference of State Legislatures, Private Use of Location Tracking Devices: State Statutes
Rhode Island stands out because its statute centers on the consent of the operator and occupants, not only the owner. If your vehicles run there, collecting each driver’s signed consent is the safe default.
Stalking laws matter too. Arizona’s stalking statute, for example, covers using a GPS device to surveil a specific person continuously for twelve hours or more, or on two or more occasions, without authorization. Tracking that drifts from managing vehicles into watching an individual off the clock is where employers get into trouble.
What changes for leased, personal, and take-home vehicles?
The more distance between your business and the vehicle’s ownership, the more consent you need. Use this as a starting point:
| Vehicle type | Can you track it? | What to do |
|---|---|---|
| Company-owned | Generally yes, for business purposes | Written notice and a signed policy |
| Company-leased | Usually, if the lease allows installation | Check lease terms, get lessor approval in writing, notify drivers |
| Take-home company vehicle | Generally yes, but off-hours data is sensitive | State in the policy whether and when off-duty location data will be reviewed |
| Employee-owned | Only with the owner’s written consent | Signed consent, work hours only, or provide a company vehicle |
| Contractor-owned | Avoid in most cases | Use job-level proof of service instead, or get signed consent with counsel’s review |
Take-home vehicles deserve extra attention. A truck parked in an employee’s driveway reports where that employee lives and where they go on weekends. Decide in advance who can see that data and for what reason, such as theft recovery, and write it down.
Do any federal rules require vehicle tracking?
For some fleets, yes. Under the FMCSA electronic logging device (ELD) rule, commercial drivers who are required to prepare hours-of-service records of duty status must use an ELD.
Recordkeeping is part of the requirement. Motor carriers must retain ELD records of duty status data and a back-up copy for six months. Because ELD use is federally required for covered drivers, it isn’t optional, but your policy should still explain what the device records and why. If your trucks fall under the rule, our FMCSA-compliant ELD solution handles hours-of-service logging alongside vehicle tracking.
What should a company vehicle GPS tracking policy include?
A strong policy answers what you track, when, why, who sees it, and how long you keep it. Cover each of these sections:
| Policy section | What to cover |
|---|---|
| Purpose | The business reasons for tracking, such as safety, theft recovery, routing, and maintenance |
| Covered vehicles and drivers | Which vehicles have devices and which roles drive them |
| When tracking is active | Work hours only, or continuous, and how off-hours data is handled |
| Data collected | Location, speed, idle time, mileage, driving events, and dashcam footage if used |
| Access | Which roles can view the data and under what circumstances |
| Retention | How long data is stored and how it is deleted, plus any federally required retention |
| Use of data | Coaching, service verification, recognition, and when data may support discipline |
| Personal use | Whether personal trips are allowed and how they are treated |
| Tampering | Consequences for disabling, unplugging, or blocking a device |
| Acknowledgment | A signature line confirming each driver received and understood the policy |
Keep the language plain. A one or two page policy that drivers actually read does more good than a dense document buried in the handbook.
How do you introduce GPS tracking without employee pushback?
Explain the reasons before the devices go in, show drivers exactly what managers will see, and use the data to protect and reward them, not just to catch mistakes. Nobody likes feeling watched, but most drivers accept tracking that is honest and fair.
- Explain the why first. Hold a short meeting before installation. Cover safety, theft recovery, and faster help during breakdowns, lockouts, and accidents.
- Show what is visible. Walk drivers through the platform, or let them try a live GPS tracking demo, so nothing feels hidden.
- Lead with protection. Location history and dashcams with integrated telematics can back up a driver’s account after a crash or a customer complaint.
- Recognize good driving. Use the data to reward safe, efficient, on-time work, not only to flag problems.
- Keep your promises. If the policy says off-hours data won’t be reviewed without a reason, hold to it.
- Review the policy every year. Update it as your fleet, technology, and state laws change, and have drivers sign the new version.
Get help setting up GPS tracking for your company vehicles
GPS Technologies is a family-owned company that has helped businesses track vehicles and equipment since 1998. We take the time to understand how your vehicles are used, then recommend devices and reporting that fit your fleet, whether you run three service vans or a full trucking operation.
Explore our GPS fleet tracking solutions, contact our team, or call (847) 382-5107, Monday through Friday, 8am to 5pm Central.
Frequently asked questions
Do I need employee consent to track a company vehicle?
In most states, consent from the vehicle’s owner or lessee is what the law focuses on, so a business tracking its own vehicles generally doesn’t need each driver’s consent. Written notice is still strongly recommended, and some states, such as Rhode Island, tie consent to the vehicle’s operator. A signed policy acknowledgment covers both bases.
Can I track a company vehicle after work hours?
You can usually keep a device active on a vehicle you own, which helps with theft recovery. The risk is in how you use off-hours data. Tracking an employee’s personal activity after their shift can create privacy problems, so state in your policy when off-duty data will be reviewed and limit access to legitimate reasons.
Can I put a GPS tracker on an employee’s personal car?
Not without the employee’s written consent. Several states make it a crime to install a tracking device on a vehicle without the owner’s consent. Even with consent, limit tracking to work hours and work trips. If a role needs constant tracking, providing a company vehicle is usually the simpler and safer option.
How long should we keep GPS tracking data?
Keep it only as long as you have a business need, and put that period in your policy. Federal rules set some minimums: motor carriers covered by the ELD rule must retain records of duty status data and a back-up copy for six months. Ask your attorney whether other recordkeeping rules apply to your industry or state.
Is a GPS tracker the same as an ELD?
No. A GPS tracker reports a vehicle’s location and driving data for business purposes. An electronic logging device records a commercial driver’s hours of service to meet FMCSA requirements. Many fleets use both, and some systems combine them, but only drivers required to keep records of duty status must use an ELD.
Categorised in: GPS Tracking Service
This post was written by GPS Technologies Team
Comments are closed here.