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Chapter 14 The Employee’s Right to Privacy, and Management of Personal Information

Copyright  2015 McGraw-Hill Education.  All rights reserved.  No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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Learning Objectives (1)

Describe the nature of privacy as a fundamental right

Explain the three general ways in which privacy is legally protected in the United States

Understand the legal concept of “reasonable expectation of privacy” and its application to the workplace

Apply the standard for unreasonable searches and seizures under the Fourth Amendment

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Learning Objectives (2)

Explain the distinctions between public- and private-sector privacy protections

Describe the legal framework that applies to private-sector privacy cases

Identify and differentiate the prima facie cases for common-law claims of privacy invasions (intrusion into seclusion, public disclosure of private facts, publication in a false light, and breach of contract/defamation)

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Learning Objectives (3)

Explain the extent to which an employer can legally dictate the off-work acts of its employees

Discuss how advances in technology have impacted employee privacy, and the key business justifications for employee monitoring

Explain the most effective means by which to design and to implement a technology use policy

Describe the legal environment that surrounds employee use of social media technologies

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Are There Guarantees in Life?

The right “to be left alone”

Privacy as a federal constitutional right

Griswold v. Connecticut 1965

“penumbras” of the Bill of Rights

Emper legitimate interests v. Empee privacy

Global marketplace  different rules elsewhere

Even if Employer may collect data, duties to safeguard Employees’ personal information

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Realities about Employee Privacy Rights (1)

Employees do not have an absolute right to privacy in their workplace

Balancing test

In the private sector, the federal Constitution does not protect employee right to be free from employer unreasonable searches and seizures

Contrast public-sector where government is employer

Some states (CA) have right to privacy in state Constitution

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Realities about Employee Privacy Rights (2)

All employees are safeguarded to some extent by common law protections against invasions of privacy

Any time an employee gives information to an employer, the employer is bound to use it only for the purpose for which it was collected, and may not further disseminate it without employee’s permission

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Background

Privacy may be protected by

Constitution (federal or state)

federal and/or state statutes

common law principles (will vary by state)

Fundamental rights: A right guaranteed by the Constitution, whether stated or not

Required disclosure of certain types of personal information should be considered an unreasonable search

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Workplace Privacy, Generally (2)

No broad rights to personal workplace privacy

No comprehensive federal workplace privacy legislation exists

States will vary widely in their coverage

Review: Employees may be fired at-will (provided it is not for illegal reasons)

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Zones of Workplace Privacy

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“Reasonable” areas in which to expect privacy in the workplace

One’s body and physical space; one has a reasonable expectation to be free from a pat-down or body search

Normally private locations, such as a purse or briefcase

Personal information, accessed without permission

Public-Sector Employee Privacy(1)

Review: government as employer means federal Constitutional protections apply

The Fourth Amendment: protection against unreasonable searches and seizures

Violation if the search is ‘Unreasonable’

Unjustified at its inception

Impermissible in scope as carried-out

Case: O’Connor v. Ortega

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Public Sector Employee Privacy (2)

Search warrant usually required

Exception: strong state interest and pervasive regulation of industry

Balancing test of legitimate interests: e.g., drug testing of railway workers for safety

Search of employer-owned property: written policy can reduce employee’s reasonable expectation of privacy (lockers, computers)

False imprisonment concern

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Public Sector Employee Privacy(3)

5th and 14th amendments tests

‘Strict scrutiny’ of fundamental rights requires ‘compelling state interest’ justification (high hurdle)

Other rights: search must be ‘rationally related to a valid state interest’ (low hurdle)

Is the right fundamental?

Implicit in the concept of ordered liberty

Deeply rooted in this Nation’s history and tradition

No general right of the individual to be left alone

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The Privacy Act of 1974

Regulates the release of personal information about federal employees by federal agencies

Basic principles

Employee access to their files

Mechanism to correct or amend information

Prevention of inappropriate revelation of information

Maintenance of information

Eleven exceptions to the act

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Wiretapping

Federal Wiretap Act – Title III

Governs the interception of oral, wire, and electronic communications related to specified criminal activity

Model for statutes in most states

Wiretapping on the rise, few applications denied

ECPA covers all forms of digital communication

Prohibits unauthorized eavesdropping, access to messages

‘in-transit’ limitation, ‘consent’ exception

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Private Sector Employee Privacy

In private-sector employment environment:

No constitutional protection triggered

Less privacy protection, unless provided by policy or collective bargaining contract (union workplace)

Compliance-related costs for private employers

Private-sector employers’ flexibility to craft policies that suit need and company culture

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Legal Framework for Employee Rights in the Private Sector

At-will employment review: Employers are free to fire an employee—and employees are free to leave the position—at any time and for any reason

Protection for private-sector employees

State and federal laws prohibiting adverse employment action, e.g., for discriminatory reasons

Employment at-will limited by certain statutes and common law

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Bases for Right to Privacy in the Private Sector (1)

State law-based claims – generally little statutory protection for private employees

Contrast: some state constitutions and statutes (CA)

Common law torts: ‘tort’ is a private wrong in which one person (e.g. employer, here) causes injury to another person

Allows the injured person to sue the alleged wrongdoer and to collect damages

The injury can be physical, mental, or financial

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Bases for Right to Privacy in the Private Sector (2)

Privacy Protections at common law (torts)

Intrusion into Seclusion

Wrongful invasion – objectionable to a reasonable person

Scenario 1

Public disclosure of private facts

Intentional or negligent public disclosure of private matters

Such disclosure would be objectionable to a reasonable person of ordinary sensitivities

Case: Yoder v. Ingersoll-Rand Company a.k.a. ARO

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Bases for Right to Privacy in the Private Sector (3)

Privacy protections at Common Law (continued)

Publication in a false light

Public disclosure of facts that place the employee in a false light

Defamation

Libel vs. slander

Compelled self-disclosure

Breach of contract

Per policies or specifics of employment agreement or CBA

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Regulation of Employee’s Off-Work Activities

Generally, private activities may be regulated if off-work conduct affects employee performance

E.g., drug, tobacco, alcohol use, weight, various recreational activities, moonlighting, relations with co-workers or competitors, ‘poor reflection’ conduct

State statute exceptions limit employer reach

NY case: dating not ‘recreation’ (?) within state statute

Don’t ignore ‘carrot’ approach, e.g., incentives

General note: U.S. companies with operations in EU must comply with its data protection laws

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Employer’s Information-Gathering Process/Justified Use/Disclosure of Information

Proper documentation is important HR function

Risks in process of information gathering

Harassment

Improper data management

Improper dissemination of information

Function creep: expands uses beyond purpose

Collection and retention should be conscious policies

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Employer’s Information-Gathering Process/Justified Use, Disclosure of Information

Collection and retrieval of information

Limitation of questions to potential employee

Proper storage of information

‘BYOD’: employee personal devices in workplace -> further complication of management

Transfer of info, e.g., References

Admin password abuse

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Employee Monitoring: Old Practice, New Face

Employer monitoring has rich tradition and raises legal, ethical concerns

New technologies dramatically increase data volume, reach, power and range of issues

Productivity measurements emphasis (currently)

Boundary-less workplace: “always-on”

New technologies: GPS, RFID, Biometric ID

Ubiquity of Social Media

access to data and reliance on it

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Evolving Legal Environment (1)

Statutes and cases beginning to address surveillance and monitoring issues

Case: City of Ontario v. Quon

Balance of privacy and business justification interests

Business justification receiving weight in early cases, esp. re employer-issued instrumentalities

Courts favor ‘notice’ that reduces privacy expectations

State statutes limit compelled access (passwords)

Exemptions for specific justifications (e.g. investigations)

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Evolving Legal Environment (2)

Productivity-related monitoring, blocking

Boundary-less workplace also increases personal use of employer assets

Burgeoning availability of tools re keystrokes, voice patterns, screen caps, even fidget monitors. Scenario 3

Other business interests: evidence of employee misconduct, IP protection or liability, viruses, hacks, reputation-related issues

Policy clarity, employee notice key prevention

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Percentage of Large U.S. Companies That Monitor Employee E-mail

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The Case of Employee E-mail

Employers’ needs vs. employees’ right to privacy

Interception (ECPA) vs. hard drive monitoring

Cases suggest no reasonable expectation of privacy on employer instrumentalities, accounts

Even when policy and statements are otherwise (Harvard leaks case)

As always, policies should address corporate interests and practices (which then need to be followed through by employer)

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Developing Computer Use Policies

Policies – written, communicated to employees, and followed

Suggested guidelines

Appropriate coverage

Employee access to information gathered

Ban on continuous monitoring and secret monitoring

Only job relevant information collected

Only for business interests

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Blogging and Other Social Media (“Web 2.0”) (2)

Employer Social Media policy recommendations:

Defined objectives that do not overreach

A reminder that company policies apply

Personal comment rules

Disclosure, monitoring, and copyright reminders

Consider photo, video, audio coverage

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Privacy Rights Since September 11, 2001

USA PATRIOT Act

Allows government to monitor anyone on the Internet simply by contending that the information is “relevant” to an ongoing criminal investigation (FISA courts)

Employer response to governmental request for information: comply voluntarily, ask to seek employee permission or require subpoena

Monitor for future anti-terrorism measure and their implications for privacy

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Management Tips

Prevention is key: sound policy development, communication and follow-through are essential

Develop policies to reduce and define employee ‘expectation of privacy’

Monitor technology policies for developments (e.g., email, and IM, and next generations)

Gather and protect data pursuant to defined business purposes

Give ‘consideration’ for any employee waivers

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