As wearable technology becomes more common in the workplace, employers and employees are increasingly leveraging devices like smartwatches, biometric trackers, and sensor-enabled safety gear to improve productivity, enhance safety, and support employee wellness. But the same tools that generate value also create complex compliance challenges.

From employee privacy and data security obligations to wage and hour risks and disability-related considerations, wearable tech is impacted by multiple legal frameworks. Employers must also be mindful of employee rights under the National Labor Relations Act (NLRA), as enforced by the National Labor Relations Board, particularly where monitoring or recording capabilities could be perceived as restricting protected activity. As adoption grows, the question is not whether organizations will use wearable technology, but whether they can do so in a way that is both innovative and fully compliant.

There are several types of wearable technology in the workplace. There are productivity and efficiency tools for task tracking and workflow optimization; health and safety devices like fatigue monitors and environmental sensors; wellness programs with fitness trackers tied to incentives, and even surveillance-capable devices like GPS and audio/video-enabled wearables. Organizations have adopted these types of wearables to increase business drivers like improving safety and reducing incidents; enhancing efficiency and data-driven decision-making; supporting employee wellness and reducing healthcare costs; and having a competitive advantage and innovative branding. Although there are many benefits from implementing the use of wearables, they also come with several compliance concerns.

Government agencies have divided risks arising from wearables into three categories: collecting information from wearables; using information from wearables; and providing reasonable accommodations surrounding wearables. Employers need to be cautious not to breach privacy and data protection. Employees expect privacy in the workplace, and there are also state-specific privacy laws you may need to comply with, like Illinois’s BIPA biometric data law. They need to show transparency in the data collection process, share what the data will be used for, and how it will be retained. It is important to have the necessary security obligations to store protected health information and to obtain employee consent before issuing a wearable device and collecting biometric data. Best practice would be to also have a comprehensive policy outlining the above in the employee handbook.

There are wage and hour implications employers need to watch out for, including tracking compensable time, especially if wearables monitor work outside scheduled hours, which could then be compensable and create off-the-clock work risks. Wearable data may contradict official time records, creating discrepancies in hours worked and pay. EEOC and GINA violations could occur if adverse actions are taken based on information from any wearable devices. This means things like promotions, shift changes, working environments, disciplinary action, and any other kind of employment decision. You want to avoid claims of retaliation based on information collected from the wearable devices.

Employers should also consider how wearable devices affect ADA and accommodation considerations. There is a question of whether some wearables could qualify as medical examinations under the ADA, and if so, that could be a violation of the employees' protections. Employers can't force employees to wear vital monitoring devices if they are not specifically related to the job and deemed a business necessity. Be cautious with mandatory programs as they carry a higher legal risk. Your voluntary programs should not be coercive, and it is best to avoid incentives that are too large. Make sure to address reasonable accommodation and provide opt-out options. Employees may need alternatives if they cannot use the issued device due to a disability. Separately, employees may need to use their own wearable device as a workplace accommodation for a disability. Your policies mustn’t limit an employee's ability to do either.  As a reminder, for data compliance, all ADA medical information must be stored separately from the rest of the employee's personnel file. Potential risks can even reach as far as Workers’ Compensation and OSHA compliance, as the use of wearables to monitor safety compliance can create a liability if data indicates risks, but the employer fails to act.

Wearable tech policies may implicate Section 7 rights under the National Labor Relations Act (NLRA). For example, some monitoring devices could chill protected concerted activity. Wearables can create real or perceived surveillance, which is a major red flag under NLRB scrutiny. If employees believe they are being constantly monitored, they may be less likely to discuss wages, hours, and working conditions, engage in concerted activity, and organize or support collective action. Intent doesn’t matter as much as impact. If employees feel watched, the policy may be problematic. Additionally, restricting employees’ ability to use recording functions for audio or video could violate these rights. Anything significantly impairing or negating employees’ ability to engage in protected activity and to keep that activity confidential from their employer is subject to penalties and investigation. The NLRB advises that overly broad surveillance or recording policies may be unlawful and that policies must be narrowly tailored and justified by legitimate business needs. It is important to avoid policies that could be interpreted as retaliatory or coercive.

Wearable technology offers employers a powerful opportunity to modernize operations, strengthen safety initiatives, and make more informed business decisions, but those benefits come with equally significant compliance responsibilities. As these tools continue to evolve, employers must find an approach that aligns innovation with legal obligations, in areas like privacy, wage and hour compliance, and disability protections. Just as importantly, organizations must remain mindful of employee rights under the National Labor Relations Act (NLRA), as enforced by the National Labor Relations Board, ensuring that monitoring practices and workplace policies do not inadvertently limit protected activity.

Ultimately, the successful implementation of wearable devices in the workplace will depend not only on the technology itself but on thoughtful policy design, transparent communication, and ongoing commitment to compliance in a rapidly shifting regulatory landscape.

Sources: parkerpoe.com; saiber.com; gao.gov; littler.com