Location services Always on or when in use?

I have an iPhone 5S running OS 8.3.1
Trying to learn as much about using Siri and the services as I can to be able to maximize my use. What I ultimately want to know is. How does Siri know where I am if the location service is set to, "when in use" for maps, and for find my friends, instead of always?
This came about when setting reminders up for, "remind me when I leave home to take out dog." for instance, or "remind me when I get to Hy-Vee to get Dr. Pepper". If the map is not always on, how does Siri know where I am? Is this going to fail? or not work? Do I need to leave the map on all the time?
Thanks

Location services gives the current location to the app that requests it.
The process looks like this... independently of the map.
Siri launches and requests location, GPS chip processes location data from the cell tower and wifi networks.
*Analyzing*
Location address found - 1 Infinite Loop, Cupertino, CA 95014

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    Message was edited by: Michael Black

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