Can a payday loan lender ban cell phones in their stores, call centers, and workspaces?
As challenging as it is to hire, train and retain employees for payday loan, car title loan, and installment loan centers, employers must proceed with caution before banning cell phones in their workplace.
I advise my clients to evaluate their business model [online vs. storefront vs. blended] and the culture they’ve created within their business.
Outright cellphone bans may severely harm your consumer loan business!
There is a perception that cellphone use in the workplace negatively impacts employee productivity, privacy, and security. In many consumer loan companies we consult for, this is the case.
STEP 1
Before implementing a policy banning all cell phones, install cameras in your common areas. Post signs disclosing that cameras exist. Make 100% certain that all employees know that cellphone use is prohibited while the employee is “on the clock.”
Step 2
Monitor your employees via the cameras. Are they neglecting their work? Are they on their phones while “on your clock?”
Step 3
Yes? Here’s the law.
The Fair Labor Standards Act defines an employer’s hourly paid employee activity rights. This includes cellphone use by employees while being paid by an employer.
“An employer may legally specify items an employee can bring into a work area. Employers can ban a multitude of items, including a gun, jewelry, a computer, an iPad, a TV… No law prohibits employers from banning cellphone use or possession during work or in a shared work area.”
The National Labor Relations Board addressed the right of employers to ban cell phones in the workplace in 2020.
Cott Beverages implemented a cellphone policy that allowed employees to use cell phones in non-working areas and breakrooms while banning their use in workspaces. The NLRB upheld this Cott Beverages policy.
Bottom Line?
If your employees continue using their cellphones for personal use while you’re paying them, an outright ban is legal and a no-brainer. Still, I recommend you begin by installing cameras, creating a written policy, and communicating your policy before using a hammer to solve the cellphone issue.
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