Be careful. Your employee tracking software and equipment may be illegal in some states.

Did you happen to catch my friend Jon Hyman’s blog post about employers who surreptitiously install tracking software on electronic devices to monitor their employees?

Your mileage may vary as to whether it’s good for business. In some states, it may be downright illegal.

For example, last month New Jersey just enacted new employee-friendly legislation — of course, it did — making it unlawful for an employer to install a tracking device on an employee-operated vehicle without notifying the employee beforehand.

The Act 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.” However, there is an exception for “devices used for the purpose of documenting employee expense reimbursement.”

I was thinking of putting trackers only on The Employer Handbook fleet of Buggati Chirons and Veyrons to ensure that there are no shenanigans when my interns pick up my mid-afternoon cheesesteak and dessert. But, alas, there is no exception for company-owned vehicles. Although, the new law does not supersede any regulations governing interstate commerce, like “usage of electronic communications devices as mandated by the Federal Motor Carrier Safety Administration.”

So, I’ll be careful. That first knowing violation will result in a fine of up to $1,000. Then, it’s up to $2,500 for each subsequent offense.

NJ employers have until April 18 to become compliant.