The plaintiffs claimed the jokes created a hostile work environment. The case was dismissed last month. Skyrocketing medical costs provide another incentive to probe, especially for companies that self-insure. Denise Nagel, the founder of the National Coalition for Patient Rights, says insurers have told her of employers that routinely check into workers' medical records. And in most places, it's quite legal.
State laws vary widely, and few federal statutes address workplace privacy.
The FBI needs a court order to tap a phone line, for instance, whereas employers have far more freedom to listen in. While the benefits for employers are undeniable, there are obvious hazards for workers. Careers may be damaged when investigators overreach, when mistakes are made, or when managers are too aggressive in enforcing company rules. Wal-Mart is one such company. The giant retailer says the policies were also adopted to prevent favoritism, either real or perceived.