Hands-Free Cell Phone Survey Results
On June 26, 2008, Employers Group launched a survey to members asking about their policies regarding the upcoming California Wireless Telephone Automobile Safety Act, which goes into effect on July 1, 2008. Below are the results of the survey based on the 271 California employers who participated.
- Survey Highlights
- About the Regulation
- Compliance Issues CA Employers Need to Consider
- Cell Phone Use While Driving - Company Policy Considerations
- Detailed Survey Results
A. Survey Highlights
- The majority of employers will restrict the use of cell phones while employees drive on company time. Almost 68% said their employees will be asked to limit or to stop altogether using their cell phone while they drive during company time.
- 22% of the companies that responded said they will ask employees to stop using the cell phone while driving and 46% will ask employees to curtail their use and will encourage employees to park and use the car.
- The policies reported also apply to employees who are likely to depend on cell phones – most notably, sales people. 96% of companies with sales personnel indicated the new rules also apply to them.
- The policies did not vary between types of companies – manufacturing, services, sales, etc., and the responses tended to be similar between large and small size companies.
- The restrictions were somewhat more likely to be implemented by companies with a significant number of personnel who would be affected by the new law. Of this group, 75% of companies would ask their employees to stop using or to restrict their use while driving, compared to 68% of all companies.
- “Liability” was a recurring employer concern – of those companies who expressed a concern with the new law, 33% fear that the new law exposes them to liability if an employee is found using the cell phone while driving and involved in an accident.
- Monitoring the new law is a challenge; of those who responded to the question of how they will monitor compliance, 30% will not do so or do not know how. 21% will monitor by reviewing phone records or similar procedures. 15% will rely on the honor system. 21% do not know if they will be monitoring compliance.
- Regarding reimbursement practices, of those employers with employees who conduct business while driving, 62% will reimburse 100% of the cost or will purchase the equipment for the employee, while 7% will reimburse the employee 60% of the cost; 31% of respondents do not have plans to reimburse the employee for the expense.
- Regarding implementation of the new policy, 61% of the companies updated their employee handbook with language on the company policy and 56% asked employees to sign acknowledgment of the company’s policy regarding he use of cell phones while driving.
B. About the Regulation
Effective July 1st, 2008, the California Wireless Telephone Automobile Safety Act bans the use of a handheld cell phone while driving. The Act prohibits the use of a cell phone while driving unless the driver uses a both hands-free device, and imposes a minimum $20 fine for an initial offense and a $50 for a subsequent event (Vehicle Code (VC) Section 23123.) For those under 18 years of age, the new law bans them from using cell phones while driving, even if a hands-free device is used (VC Section 23124).
Exemptions to this law include:
- The use of cell phones to make emergency calls to a law enforcement agency, a medical provider, the fire department, or other emergency services agency;
- Emergency service personnel. These individuals may use cell phones while operating authorized emergency vehicles in the course of their duties;
- Certain commercial truck drivers. Within limits, the law allows the use of push-to-talk two-way radios with a wireless telephone that does not require immediate proximity to the driver's ear. Included under this group are motor trucks or truck tractors that require either a commercial class A or class B license to operate. Agricultural vehicles and tow trucks are also included in this category.
Employers are reminded that equipment necessary to conduct business must be paid for by the employer. Where the equipment is used for both business and personal use, the employer is responsible for a proportionate share of the cost.
C. Compliance Issues CA Employers Need to Consider
California mandates that all equipment necessary for the performance of work be paid for by the employer. Where the equipment is used both for work and personal reasons, the employer must pay for the proportionate share of the equipment.
When the employee travels in the course of business, the employer must pay both for fuel and the business use of the employee's personal car. This responsibility can be met by paying either the actual travel cost or the IRS mileage reimbursement rate.
California takes the position that when the employee drives their personal vehicle for company business, then any damage to the vehicle incurred in an accident will be the employer's liability. However, if the employer pays a reasonable mileage reimbursement rate, then liability for the vehicle's damage will be the employee's alone. A reasonable mileage reimbursement is interpreted by the state to be the IRS standard mileage reimbursement rate. Beginning on July 1, 2008 the IRS standard mileage rate was increased to 58.5 cents per mile. It will remain at this rate for six months, until December 31. 2008.
D. Cell Phone Use While Driving - Company Policy Considerations
- Be clear about the company’s concerns for safety and the employee’s responsibility toward this end. State the disciplinary action taken if the policy is not followed.
- State the requirement of a hands free device while driving.
- State the specific conditions under which the employee may use and not use the cell phone while driving.
- Reiterate/state rules about safekeeping of this and other cell phone equipment and what to do if equipment is lost or stolen.
- Address the issuance and or reimbursement policy regarding cell phone equipment.
- If company owned phones are issued, address the use of the phone while driving and tasking personal calls.
- Be sure to refer to Section C on Compliance Issues for regulatory requirements related to equipment and driving.
- Be sure to have all employees sign an acknowledgement of the policy.
E. Detailed Survey Results
The information below details the percent of responses received in response to an email questionnaire distributed to Employers Group members on Wednesday, June 25th. The responses are based on 271 responses.
REGARDING COMPANY’S POLICIES: CELL PHONES AND DRIVING
- For the new cell phone law, which of the following statements best reflect your company’s policy on employees’ use of cell phone to conduct business while driving:
- With the necessary equipment, employees may conduct business by cell phone while driving. (32%)
- With the necessary equipment, but within limits and under certain conditions, employees may conduct business by cell phone while driving but will encourage employees to park to use cell phone. (46%)
- We have taken the appropriate steps to stop employees from driving and using the cell phones to conduct business. We notified all employees not to do business by cell phone while operating a motor vehicle. (22%)
- Do the policies above apply to outside sales or field personnel?
- Yes. (97%)
- No. (3%)
- We do not have outside sales or field personnel. (this group was not counted on the percents above)
- If you allow employees to conduct business while driving, how will you handle the cost of the hands-free device? For California compliance requirements see (C) above.
- We'll reimburse the employee for the total cost of the hands-free device. (14% or 34 companies, avg. percent reimbursement: 100% based on 30 companies)
- We will pay for a portion of the cost of the hands-free device. (7% or 16 companies, avg. reimbursement: 65% based on 7 companies)
- We'll purchase equipment for employee as cell phone is owned by company. (48% or 118 companies, avg. reimbursement: 99% based on 71 companies)
- We do not have plans to reimburse the employee for the expense. (31%)
- What portion of the cost of the hands-free device will you reimburse?
- Those who answered A or C above, 100% (101 companies)
- In what ways has your company prepared for the changes?
- Had group discussion / training; (23%)
- Employees signed acknowledgment of company�s policy regarding the use cell phone use while driving; (56%)
- Updated employee handbook; (61%)
- With truck drivers, updated their equipment. (5.9%)
- How will you monitor employee usage of cell phones to conduct company business while on the road?
Based on 105 responses:
- Do not know
- Honor system
- Monitor cell records
- Do not plan to monitor
- No way to do so
- Training
- Per violation
- Miscellaneous
|
21.9%
14.3%
21.9%
18.1%
11.4%
5.7%
3.8%
2.9% |
- Approximately what percent of your employees will be affected by this new law?
Based on 271 Responses:
| |
OPTIONS |
RESPONSES, AS A PERCENT |
- 0- 1%:
- 1.1% to 3%
- 3.1% to 5%:
- 5.5% to 10%:
- 10.1% to 20%:
- 21 to 40%:
- Over 40%:
- n/a
|
9.7%
13.1%
13.1%
16.0%
20.1%
15.7%
16.8%
1.1%: |
- How many employees does your company have?
- Less than 50
- 50 to 100
- 101 to 250
- 250 to 500
- Over 500
- n/a
|
18.5%
0.7%
0.6%
5.5%
2.9%
1.8% |
- Which of the following best describes your industry?
- Manufacturing
- Financial Services
- Health provider and related
- Non-profit
- Public
- Sales
- Services
- n/a
|
37%
7%
3%
9%
2%
11%
30%
1% |
- As an employer, are there other concerns that you have regarding this new law and its effect on the workplace?
- Lost productivity while traveling/commuting long distances on business, however, safety overrides those concerns.
- After-hours calls on cell phones that are work-related. We are concerned about an employee getting a call outside of business hours on their cell phone and answering it while driving and possibly getting in an accident.
- Another intrusive law coming from the Democrats in Sacramento.
- Comment: The hands-free device the company is providing is not Bluetooth. It is a cord that will plug into the phone.
- Company Liability as to accidents while using cell phone for business purpose, tickets, etc.
- Cost of the ear buds and employees not being happy with what we'll provide.
- Employees will invest in Bluetooth devices and wear them in the office. Which may distract employees which effects focus and concentration.
- Employer liabilities
- Hands free devices are going to be lost and damaged and communication is expected to be poor.
- HOW DOES IT AFFECT TEXT MESSAGING?
- I believe it will become the norm. I am worried about potential liability in the event of adverse events occurring with non-compliant employees.
- I don't think so?
- I expect to see a lot more employees sitting in the parking lot on their phones, instead of calling as they get into their car. :)
- I just do not want to appear as if as a company we are infringing on individual freedoms
- I think this law did not go far enough. It should have included texting, internet access and other distracting devices.
- I think we need to take a stronger stance other than sending out the emails we did. I like the idea of an acknowledgment of policy signature.
- It is about time it will be enforced.
- It will be a trust element as we cannot see those who are out in the field
- Just the liability
- Liability
- Liability, liability, and liability no matter what we do. The concern is that we may still be liability no matter what our policy states.
- Litigation regarding negligence
- Most people already use hands free devices and it hasn't affected us in the past. Business as normal.
- New law does not include texting.
- Note that employees may receive a company-sponsored discount from 25% to 33% when they purchase certain hands-free devices (and other devices) which is how the company will help defray the cost as opposed to 'reimbursement' as indicated in Question 4.
- People will ignore the policy and it becomes a liability issue and a safety issue.
- Pretty much impossible to do much more than instruct and train. You have to trust that your employees will comply.
- Does not go far enough
- The effect it may have on extending our liability.
- Unfortunately, I didn’t even think that this would be an issue. I will now have to think about how it affects my one to two employees who do business while driving the car.
- We believe texting and e-mail activities should have also been included in the law.
- We did not change the handbook, but added a cell phone policy.
- We use push to talk, but don't qualify as a motor truck so could impact ease of operations.
- What is the liability to our company if an employee were to be in a traffic accident and they do not have a hands free device?
- Would like any additional information to minimize liability.
- Yes, personal phone use while driving on work time.
- Yes, what if the employee receives a ticket?
