Why Your Company Really Needs a Cell Phone Policy

October 20th, 2009 by Telecommunications-editor
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We are reading a lot these days about restrictions and liabilities for drivers using cell phones while driving. This got me thinking: am I taking a risk because our company employees travel daily and use cell phones for company business? What if they got into a serious accident while using their cell phone to conduct company business (distracted driving). Would my company be liable for damages?

According to Nancy Cooper, a columnist for Inc. Magazine, “Employers can be liable for road accidents caused by worker cell phone use. A strict cell phone safety policy can help.” And Sates have different laws that address cell phone use while driving. Since many companies have locations in multiple states, it is advisable for them to institute a company-wide policy that discourages cell phone use while driving – across all geographies – period.

As a telecommunications consultant, I often write corporate cell phone policies for my clients. And the distracted driving problem is yet another great reason to have one in place. However, there are several other reasons that companies should have a comprehensive corporate wireless policy.

The Importance Of Cell Phone Safety

A good cell phone policy not only covers this kind of newer liability issue, it also covers many other legal and financial challenges that might cause you problems.

For instance, there is an IRS guideline that requires company cell phones and wireless data devices to be used only for business purposes; otherwise, personal use of these devices must be claimed as a taxable benefit. Your company could be penalized and audited for non-compliance of this rule.

Make sure there are provisions in your wireless policy for business and personal use. Should your employees be allowed to use your company’s cell phones in an emergency? Probably so; however, you must make it clear as a matter of policy what is allowed and what is not. A good cell phone policy will clearly show your managers and employees the companywide rules for wireless usage to avoid some managers making their own decisions.

Another problem that cell phone bill auditors see today is that of ownership of company cell phone numbers. This is a particularly thorny issue for companies that have personnel in critical sales jobs or employees who have cellular contact with key customers or enterprise accounts who take company cell phone numbers with them when they leave. Your policy should state that your company exclusively owns the phone numbers, not the employee. Why? If the employee leaves your company, many of your key customers may still be contacting them on that phone number (possibly at a new competing job) for similar goods and services! Believe me, this happens all the time, and it is a real problem.

Many employers simply reimburse their employees for business usage of the employees’ personal cell phones, without thinking about the critical company vehicle that the cell phone represents. Its loss could negatively impact your business. Therefore, I most often recommend that your cell phone policy should state that the cell phone and the number belong exclusively to the company and that the employee must turn in the equipment upon termination of employment.

Employees Should Be Aware

Employees should understand that cell phones and wireless data devices are controlled not by them, but by a company-authorized employee who is the only person authorized to order devices, assign plans, manage devices and the like. This will preclude complete chaos in tracking and prohibit employees from ordering whatever services they want.

Another cell phone issue is liability for damage. A good wireless policy also stipulates responsibility for lost or intentionally or accidentally damaged phones and how to report problems. This will prevent confusion and help keep costs under control.

Once you have a company cell phone policy in place, make sure you read and discuss it thoroughly with all of your new and current employees. Have them sign the policy to ensure that they understand the information contained within. Be sure to provide employees with a copy of the cell phone policy and include a statement in the language of the signed policy that the employee has been given a copy. This will help minimize your company’s liability for any legal issues that may arise. The cell phone policy should be a required part of your company’s new employee orientation.

We Can Help

Do you need a cell phone policy written for you or a cell phone bill audit performed for your company? Contact the telecommunications audit experts today.

Tags: cell phone bill audit, telecommunications audit

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