Technology has transformed the modern workplace. Employers have access to more information than ever before, including employee performance data, electronic communications, location information, and productivity metrics. While these tools can help businesses operate more efficiently, they also create important legal and privacy considerations.
Many employers assume that because company devices, systems, and software belong to the business, they have unrestricted authority to monitor employee activity. However, state privacy laws are evolving, and employers must understand what information they collect, how it is used, and what notice obligations may apply. The legal landscape is changing quickly, and businesses that fail to evaluate their practices may face unnecessary risk.
Here are four important areas employers should consider when reviewing their data privacy and workplace monitoring practices:
1. Understand what employee data you are collecting
Many businesses collect significantly more information than they realize. This can include job applications, payroll records, performance evaluations, electronic communications, biometric information, and data generated through workplace technology. Employers should identify what information is collected, why it is collected, and who has access to it.
2. Review employee monitoring practices
Software that tracks computer activity, monitors location, records communications, or measures productivity has become increasingly common. Employers should understand whether state laws require employee notice before using these tools and ensure that their workplace policies accurately describe their monitoring practices.
3. Evaluate third-party technology vendors
Many workplace technologies are provided by outside vendors. However, relying on a third-party platform does not eliminate an employer’s responsibility to protect employee information. Employers should review vendor agreements, understand how data is stored and shared, and confirm that appropriate security measures are in place.
4. Update workplace policies before problems arise
Privacy and data laws continue to evolve at the state level. Employee handbooks, technology policies, and internal procedures should be reviewed regularly to address current practices and legal requirements. A proactive review today can help avoid employee complaints, investigations, or costly disputes in the future.
Technology can be a valuable tool for businesses, but it should be implemented thoughtfully. Employers that understand their data practices, establish clear policies, and stay ahead of changing legal requirements will be better positioned to protect both their business and their employees.