Employers seeking to increase productivity by arming their employees with cell phones and PDAs (personal digital assistant) not only have a new statute to comply with -- the California Wireless Telephone Automobile Safety Act of 2006 -- which becomes effective on July 1, 2008, but also face: (1) increased risks of liability from third-party personal injury claims; (2) possible claims for unpaid compensable time; and (3) additional work related injuries.

1.  The California Wireless Telephone Automobile Safety Act of 2006

According to a 2005 study commissioned by the Insurance Institute for Highway Safety (“IIHS Study”), drivers who use cell phones, even hands-free models, are 400 times more likely to be involved in serious accidents.  Not surprisingly, California passed legislation prohibiting drivers’ use of hand-held cell phones.  The California Wireless Telephone Automobile Safety Act of 2006, codified as Vehicle Code Section 23123, takes effect in July 2008 and will make it an infraction to drive a motor vehicle while using a cell phone, unless the phone is configured to allow hands-free listening/talking and is used in that manner.  Violators will pay a fine of $20 for the first offense and $50 for subsequent offenses.  Exceptions to Section 23123 include, among others, emergency calls and push-to-talk hand-held phones that drivers of certain commercial vehicles may continue to use until July 2011.  Interestingly, the IIHS Study found that cell phones with hands-free operation offered little or no appreciable safety advantage over hand-held operation – suggesting that laws allowing drivers to use hands-free devices will not materially curb the accident risks associated with cell phone use.