Microsoft’s new Smart Location feature in Microsoft Teams is being framed as a breakthrough for hybrid work. But is it?
A recent UC Today article, “Microsoft Teams Smart Location: A Legal Wake-up Call for Hybrid Work,” raises the question about whether, from a legal standpoint, it may be something else entirely: a turning point in how organizations manage employee trust, transparency, and data.
At the center of this conversation is our Partner, Peter Cassat, who offers a pragmatic—and cautionary—perspective on what this shift really means.
“Employers May Need to Know—But That Comes With Risk”
Cassat acknowledges that Smart Location solves a real business problem: compliance.
“In some cases, an employer has a need, if not a right, to know from where the employee is performing services.”
He points to a growing issue in hybrid work—employees working from locations that create tax, regulatory, or legal exposure:
“If I find out that the person who said that they’re working in Illinois… is actually working 350 days out of Wyoming… I have a problem.”
Location visibility isn’t just about productivity—it’s about corporate liability and governance.
The Dark Side: “A Lot of Potential for Misuse”
While the operational upside is clear, Cassat warns that the same data can quickly become a surveillance tool.
“I think there is a lot of potential for misuse of the information.”
He highlights a key tension in hybrid policy enforcement:
“People feel like, ‘Well, I was there for 15 minutes. Does that count?’”
This raises a critical concern: Will organizations start measuring time spent in the office instead of output delivered? Without guardrails, Smart Location risks reviving outdated, presence-based performance management.
Privacy Isn’t Optional—It’s a Legal Minefield
Cassat is especially clear on one point: collecting location data triggers serious legal obligations. “They could be running afoul of those restrictions right now if they are not obtaining the proper consent.”
He emphasizes that laws in places like New York, California—and especially the EU—require:
- Clear disclosure
- Explicit consent (in many cases)
- Defined use of collected data
“It’s just a good corporate practice to be transparent with respect to your use of personal information.” Turning on Smart Location without a privacy framework isn’t just risky—it could be non-compliant.
The EU Factor: Even Higher Stakes
For global organizations, Cassat flags even stricter expectations abroad:
“In the EU, these tensions are likely to be heightened.” What might be acceptable in the U.S. could face significant legal resistance internationally.
Governance Before Technology—Not After
Perhaps Cassat’s most important advice is about timing:
“I’d want to make sure that we know why we’re doing it… before we start collecting all this location-based information.”
He warns that many organizations may already be collecting data without a clear plan, creating avoidable risk.
Instead, he recommends a C-suite-led governance approach: “Get the Chief Human Resources Officer and chief data privacy officer together.” Strategy must precede implementation—not follow it.
Final Thought: A Leadership Decision, Not a Tech Feature
Cassat’s perspective reinforces a broader truth: Smart Location isn’t just a feature—it’s a test of leadership judgment.
Organizations now face a choice:
- Use data to enable smarter, more meaningful collaboration
- Or use it to monitor, measure, and control
The technology may be neutral—but how it’s deployed will define workplace culture for years to come.
If you have questions about technology and its impact on compliance and the workplace, please reach out to Peter directly at pcassat@cm.law or 844-285-2463, ext. 783.
Read the article in its entirety HERE
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The foregoing content is for informational purposes only and should not be relied upon as legal advice. Federal, state, and local laws can change rapidly and, therefore, this content may become obsolete or outdated. Please consult with an attorney of your choice to ensure you obtain the most current and accurate counsel about your particular situation.
