Beginning July 1, tens of thousands of drivers in California may be surprised by a $20 ticket for talking on their mobile phone. That's when the state's new law goes into effect. For subsequent offenses, it's $50.

Separate legislation that becomes law the same day prohibits all drivers under 18 from using any mobile device at all while driving - emergency calls exempted.

But that's not the real issue for businesses.

No, the bigger problem is liability. And it could cost businesses much more than $50.

Question: What happens when your employee, who is talking on a company-issued cell phone, plows into another vehicle, or worse, causes a fatality?

Answer: Fortunately, this law only applies to the driver of the vehicle. Employers will not be ticketed or otherwise fined, but if they require employees to use their mobile phones while driving, or employers are not clear enough in their prohibition of the use of phones, they can be held liable for costs associated with car accidents while the employee is working.

Question: What happens if your company needs employees to be available in their cars via mobile phone, such as with salespeople? Should employees be supplied with a hands-free device?

Answer: The law does not provide an answer to this question. But CalChamber strongly recommends against requiring employees to be available by mobile phone while driving, as it exposes businesses to significant liability. An argument can be made that if hands-free devices are provided to employees in response to this law, businesses are endorsing the use of phones while driving and could be held liable.

Question: What if an employee uses a cell phone for personal use while driving to work and gets injured? Is the employer liable for workers' compensation benefits?

Answer: This would depend on numerous factors that should be discussed with legal counsel and insurance carriers. Employers may try to defend against an employee receiving workers' comp benefits by claiming the employee engaged in willful misconduct, but this is a high burden and only is successful in limited circumstances.

Question: And what about the popular push-to-talk phones, are they OK?

Answer: No. The law does, however, provide an exception for those operating a commercial motor truck or truck tractor (excluding pickups) to use a two-way radio operated by a "push-to-talk feature. And a push-to-talk feature attached to a hands-free ear piece or other hands-free device is acceptable.

Question: Can drivers dial, text or read email while driving?

Answer: The law is unclear on this issue, but if there is an accident when this happens, your company could be vulnerable to liability.

Question: So what should employers do to prepare for these new laws?

Answer:

" Consult with legal counsel, particularly if you hire minors and/or have employees who regularly use their cell phones or are on the road a lot.
" Adopt a clear policy that prohibits the use of any mobile phones while driving.
" Train supervisors and managers to communicate to their staff about the company's policy prohibiting the use of mobile phones while driving.
" Discipline employees who violate the policy.