Cell Phone Policy

Policy

This policy is a State Controller policy issued under the State Fiscal Rules. Agencies shall only provide employees with State-owned cell phones and provide Allowances for employee-owned cell phones used for State business in accordance with this policy. 

Authority 

• §18-4-401, C.R.S. (Theft)
• §18-8-407, C.R.S. (Embezzlement of Public Property)
• §24-30-201, C.R.S. (Powers and Duties of the State Controller)
• §24-30-201(1)(e), C.R.S. (Authority to Manage Financial Affairs of the State)
• §24-30-202(2), and (5)(a), C.R.S. (Propriety of Expenditures)
• §24-2-103, C.R.S. (Compensation for State Employees)
• §24-30-202(22), C.R.S. (State Controller Authority for Allowing Perquisites)
• §24-30-202(26), C.R.S. (State Controller's Authority Regarding Use of State Vehicles)
• §24-50-104(8)(a), C.R.S. (Payment of Salaries

Definition

• “Cell phone” is defined as a mobile phone, air card or similar device.
• “State-owned cell phone” is defined as a cell phone owned by the State.  The State pays the initial cost and monthly service cost of the cell phone. 
• “Employee-owned cell phone” is defined as a cell phone owned by the employee.  The employee pays the initial cost and monthly service cost of the cell phone.
• Flexible Work Arrangements – See Flexible Work Arrangements Fiscal Policy.

State-owned cell phones

• Qualifications – In order for an employee to qualify for a State-owned cell phone, both of the following criteria shall be met:
  • Nature of the work – Nature of work is critical to the operation of the agency and requires: 
    • Substantial travel, and therefore, limits the ability to use the employee’s office phone, or other available office phones, or
    • The employee to respond immediately, or
    • The employee to be available outside of normal office hours.
    • Other requirements established by the employee’s agency may be applicable.
  • De minimis personal use – The employee uses the cell phone primarily for conducting State business.  The employee may use the State-owned cell phone for personal use provided all the following criteria are met:
    • The employee’s personal use of the State-owned cell phone is infrequent and short in duration, and
    • The personal use of the State-owned cell phone does not result in additional charges to the State, and
    • The personal use of the State-owned cell phone does not count as work time.
• Procedures for requesting a State-owned cell phone. Each State agency shall develop its own procedures for employees to request a State-owned cell phone.  These procedures shall provide that requests for State-owned cell phones shall be approved by at a minimum the Appointing Authority or delegate.  An example of a cell phone request is attached to this policy.
• Agreement between the State agency and employee. Each State agency shall develop a State-owned cell phone agreement between the State agency and employee.  An example agreement is attached to this policy.  At a minimum, every agreement shall require the employee to agree to:
  • abide by the terms of this policy,
  • use the State-owned cell phone only for de minimis personal use,
  • not use the cell phone in an unsafe manner while operating a motor vehicle or other equipment provided by the agency,
  • not use the cell phone for any purpose that would violate any Federal or State law, rule, or regulation,
  • reimburse the State for the current cost of a similar cell phone if the employee loses or damages the State-owned cell phone,
  • acknowledge that State-owned cell phone bills and “other documents” are subject to the Colorado Open Records Act, Colorado Revised Statute Title 24, Article 72,
  • return the State-owned cell phone to the State agency immediately upon request or upon termination of employment with the State agency, and
  • reimburse the State for the current cost of a similar cell phone if the employee fails to return the State-owned phone upon request or upon termination of employment with the agency.
• Consequences of non-compliance.  A State agency shall have the following remedies listed in this section in addition to all other remedies at law, and may invoke any or all of the following remedies for non-compliance with this Policy:
  • return of State-owned cell phone,
  • reimbursement to the State of Colorado for use and/or replacement of the State-owned cell phone, and/or  
  • corrective or disciplinary action.
  • Legal action including seizure and garnishment.
• No charges to employees.  Because an employee agrees to use a State-owned cell phone for de minimis personal use, State agencies shall not charge employees for personal use of State-owned cell phones.

Employee-owned cell phones

• Allowances
  • Qualifications
    • Nature of the work – Nature of work is critical to the operation of the agency and requires:
      • substantial travel, and therefore, limits the employee’s ability to use the employee’s office phone, or other available office phones, or 
      • the employee to respond immediately, or
      • the employee to be available outside of normal office hours. 
      • other requirements established by the employee’s agency may be applicable.
    • Cell phone coverage – The employee must maintain the type of cell phone coverage that is required by the agency.
    • Allowance not a substitute for wages - The allowance must not be a substitute for a portion of the employee’s wages.
    • Allowance is PERA Includable and Taxable – Departments must use a PERA includable earnings code for the allowance amount.  For CPPS users, this code is CLP.  The allowance is taxable and subject to Medicare withholding.
  • Approval of Allowance – If a State agency decides to pay an allowance to an employee for an employee-owned cell phone, the agency shall use an approval process similar to the approval for State-owned cell phones.  An example of an allowance request and agreement is attached to this policy.
  • Amount of Allowance –The Office of the State Controller shall set the amount of the allowance at the beginning of each calendar year based on the cost of State-owned cell phones.  The current allowance amount is $50.21 per month.
  • Subject to Colorado Records Act – Employee-owned cell phone records are subject to the Colorado Open Records Act, Colorado Revised Statute Title 24, Article 72, if the employee has been provided an allowance.  If the employee has not been provided with an allowance, the employee-owned cell phone records are not subject to the Colorado Open Records Act.
• Reimbursement – State agencies shall not reimburse employees for State use of personal cell phones.

Flexible Work Arrangements

A State agency may consider the employee’s Flexible Work Arrangements in determining whether to provide a State-owned cell phone, an allowance for an employee owned cell phone, or not to provide either a State-owned cell phone or allowance.  A State agency is not obligated to provide a State-owned cell phone or an allowance because the employee is working remotely.  Employees have the use of other State-provide communication and video conferencing tools for conducting State business while working remotely.

Compliance and compensation

Each State agency shall use a risk based approach to verify that employees are in compliance with the terms of this policy.  If the qualifications in §2(a) for State-owned cell phones are not met, the IRS will treat the employee’s use of the State-owned cell phone as a taxable fringe benefit, and the agency shall include the cost of providing the State-owned cell phone in the employee’s compensation.  An allowance received for use of a personal cell phone is taxable to the employee.  A cell phone provided to promote the morale or good will of an employee, to attract a prospective employee or as a means of furnishing additional compensation to an employee do not meet the qualifications and are prohibited.   
 

Sample Cell Phone Request Form

Sample Department and Employee Cell Phone Agreement

Sample Allowance Request and Agreement

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