When asking about laws, it is essential to say where you live. Different places have different laws. After a look through your recent posts, it appears you live in Ohio. These practices probably violate specific laws in Ohio.

One of them is ORC 2903.216 (B) (1), which prohibits causing a tracking device or application to monitor a person’s movement without their consent.

The other is ORC 1345.02 (A), which prohibits unfair or deceptive trade practices. It’s a bit more open to interpretation, but something makes me think a judge would not be amused.

Anyway, I’m not a lawyer, and it sounds like you need one. It’s not rare that lawyers offer free consultations to determine if you have a real case.

This is lawyer territory. Randos on the internet will not be able to help.

While others are focusing on the legal aspect, which I guess is the question you actually asked, my first thought was bare minimum compliance while gathering evidence. Grab an old phone, wipe it completely, install the app with all new credentials not tied to you in any way, then just leave it running at work. They get their location data, just not anything usable, you get to submit a minimum number of receipts that doesn’t get you in trouble from purchases you would have made anyway, or not because why support scumbag companies. You get to gather more hard evidence of their assholery that way. Never install work apps on your personal phone. If they require something for your job, they should provide the hardware to run it on.

Assuming this is real, you can potentially get quite a bit of money off this. Talk to an employment lawyer for free consultation and see if you can get terminated for not following this procedure. You’ll need to document evidence of the company pressuring you to use the app.

It doesn’t even have to be illegal for this to work. It only has to be unreasonably outside your job responsibilities.

Name and shame, please.

IANAL, but it is an interesting question to consider whether it would be illegal in Australia (if anything, as a test to see if the right laws are on the books to block this kind of thing). The laws are likely different in the US, and it might vary from state to state.

The Fair Work Act 2009 (Commonwealth), s325 provides that:

An employer must not directly or indirectly require an employee to spend, or pay to the employer or another person, an amount of the employee’s money or the whole or any part of an amount payable to the employee in relation to the performance of work, if:

(a) the requirement is unreasonable in the circumstances; and

(b) for a payment—the payment is directly or indirectly for the benefit of the employer or a party related to the employer.

I think you could imagine the employer arguing a few lines:

• The employee is not required to spend, it is only a factor in promotions and not retaining the same role. OP said you can “get in trouble for not using this” - countering this defence perhaps depends on proving what kind of trouble to show it is a requirement. In addition, under s340, employers are not allowed to take an adverse action against an employee for exercising or proposing to exercise a workplace right, and adverse action includes discriminating between and employee and other employees of the employer.
• That the employee is not required to pay any particular person, they can choose what to buy as long as the select from a prescribed list. However, I think that could be countered by saying this is an indirect requirement to spend, and the “or another person” attaches to the “pay” part, so I don’t think that argument would fly.
• The the requirement is reasonable - however, that could be countered by arguing the privacy angle, and the fact that this is for personal shopping, far outside the reasonable scope of an employment relationship.
• That the payment isn’t for the benefit of the employer. I think that could be countered firstly by arguing this is a requirement to spend not pay, and event if it was to pay, it is indirectly for the employer’s benefit since it allows them to attract and retain clients. The way they are pushing it could further prove this.

So I think it would probably be contrary to s325 of the Fair Work Act in Australia.

Another angle could be the right to disconnect under s333M of the Fair Work Act:

An employee may refuse to monitor, read or respond to contact, or attempted contact, from an employer outside of the employee’s working hours unless the refusal is unreasonable.

If someone has a work and a personal phone, and has the app on the work phone, but refuses to use take the work phone or install an app on their personal phone so they can respond to tracking requests from the employer, then maybe this also fits.

I also wonder if in Australia this could also be a form of cartel conduct - it is an arrangement of where purchases (other than those the company should legitimately control) are directed centrally under an arrangement by an organisation.

Under s45AD of the Competition and Consumer Act 2010,

(1) For the purposes of this Act, a provision of a contract, arrangement or understanding is a cartel provision if: (a) either of the following conditions is satisfied in relation to the provision: (i) the purpose/effect condition set out in subsection (2); (ii) the purpose condition set out in subsection (3); and (b) the competition condition set out in subsection (4) is satisfied in relation to the provision.

So the purpose condition has several alternatives separated by ‘or’, one of which is:

(3) The purpose condition is satisfied if the provision has the purpose of directly or indirectly: … (b) allocating between any or all of the parties to the contract, arrangement or understanding: (ii) the persons or classes of persons who have supplied, or who are likely to supply, goods or services to any or all of the parties to the contract, arrangement or understanding; or

It sounds like there is a solid argument the purpose condition is met - they are allocating where people who are part of the arrangement (employees) shop.

They’d also need to meet the competition condition for it to be cartel conduct. For this to be met, the arrangement might need to include the clients of the company:

(4) The competition condition is satisfied if at least 2 of the parties to the contract, arrangement or understanding: (a) are or are likely to be; or (b) but for any contract, arrangement or understanding, would be or would be likely to be; in competition with each other in relation to: … © if paragraph (2)© or (3)(b) applies in relation to a supply, or likely supply, of goods or services—the supply of those goods or services in trade or commerce; or

So it could be argued that this is a cartel arrangement between the company, its clients, and its employees, and so attract penalties for cartel conduct.

🎶

You load sixteen tons, what do you get?
Another day older and deeper in debt
Saint Peter don't you call me, 'cause I can't go
I owe my soul to the company store

🎶

This sounds like a company store with extra steps. IANAL but it sounds extremely illegal for your employer to dictate what you do with your wages in any way, including linking it to career advancement. I highly doubt this is a union job, so your best bet might be to talk to a labor attorney. Do not talk to the company’s HR dept., because they don’t work for you; they work for your employer.

That’s not a job that’s a scam

Saint Peter dont you call me, cause I can’t go I sold so my soul to the company store.

Yeah that shits probably illegal on some level but I’d call a lawyer.

Seems like a story some newspaper would like to report on

First thing to ask is what state you live/work in? Is it a right-to-work state? If so, then they can fire you or choose to not promote you for no (reported) reason at all, which very likely means you have no legal recourse. If they were to come out and directly say in documented way that they will fire or not promote you if you don’t use this app, that might be different. You’d need to talk to a lawyer who is familiar with laws in your state. But you’d also need documented evidence of this, which means emails sent stating this, or a recording (keep in mind if your state has 2-party consent laws) of a higher-up saying it.

If you’re in one of the 27 Right to Work States, though, there’s likely very little you can do about it short of finding a different job.

It sounds like the employees are the bottom level of some kind of scam. A company that has so little faith in itself that it forces their employees to act as customers is either on the verge of ruin or just completely unethical. They’re definitely getting some kind of kick backs from this.

I’m sure they have found some kind of shitty technical loophole that makes it legal somehow, but you might still report it anonymously to the employment commission since it is 100% unethical and a serious conflict of interests.

Either way if possible find somewhere else to work as soon as you can. Once these people have bilked you out of as much of your paycheck as they can they will decide your no longer a valuable company asset

I am not a lawyer, and I am not your lawyer.

Off the top of my head, I can’t really see where or how this is illegal in most US jurisdictions. In “at will” states you can be hired or fired at any time for any reason* or no reason. And likewise you can quit at any time for any reason or no reason. If you can be hired or fired based on this scam, you can be promoted or held back based on it.

Having said that, this is really scammy, and I would not want to work there.

*except discrimination based on: race, color, religion, sex, national origin, age (>40), or genetics. Likewise, retaliation for unlawful sexual harassment.

Damn, Elon’s company town is barely a week old and others are already introducing scrip. I knew it was going to be inevitable but this is way faster than even I anticipated.