Smartphones, but dumb mistakes: Avoid the most common FLSA & safety risks.

• Position: Nuts & Bolts

These days, smartphones are simply an extension of your employees themselves. Virtually all your workers have them, and the machines allow your staff to perform work tasks at home or on the road.

But don't ignore the big-time legal risks of those small devices. Here is some compliance advice on the top liability concerns:

SAFETY: Set a policy on usage while driving, working

According to the U.S. Bureau of Labor Statistics, 40% of all workplace fatalities involved transportation incidents. Not surprisingly, many of those accidents involved employees' use of phones while driving--and some have led to million-dollar legal payouts.

Example: An Arkansas lumber company was held liable when an employee who was on his cellphone during a sales call struck another car, injuring a 79-year-old woman. The company reportedly settled the case for $16 million.

An outright ban on cellphone usage by employees while driving is unlikely to be effective. However, all employers should implement clear, written policies and safety guidelines to keep employees safe and mitigate potential...