The short answer is—no. In the United States, using employee monitoring software is legally permitted under the Electronic Communications Privacy Act of 1986 (ECPA). Employers have a lot of freedom when it comes to tracking activities and internet traffic on company-owned devices, especially when there is a legitimate business reason. This applies to everything from tracking file distribution to monitoring keystrokes.

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But, there is more to this issue. Specific state laws might impose additional guidelines, so both employers and employees need to be aware of the regulations that apply in their respective states.

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Employers should also choose wisely and pick a computer monitoring app that allows extensive customization of monitoring settings. One of the most flexible monitoring tools is Insightful. This tool allows detailed activity and productivity monitoring while respecting the employees’ privacy and data security.

The question: “Is it illegal for employers to use employee monitoring software?” comes with a host of other doubts. Check out some more FAQs related to this topic:

Is it mandatory to inform employees about monitoring?

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There are two answers to this question. At the federal level, there are no legal requirements for employers to notify their employees about the use of monitoring tools. Employers can legally monitor their employees without prior consent.

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Still, in several states such as Connecticut, Delaware, Texas, and New York the situation is different. These states have enacted laws demanding that employers inform their employees about monitoring.

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If you are hoping to improve your team’s productivity through monitoring, experience has shown that it’s better to notify your employees about monitoring. This can help you foster a trusting environment, protect the business in legal scenarios, and enhance team dynamics.

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Are employers allowed to monitor screen contents on company computers?

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Yes, in the United States, employers are allowed to monitor screen contents on company computers. This type of monitoring is completely legal at the federal level. It's generally assumed that all activities performed on work computers should be accessible to employers, particularly when supported by clear workplace policies.

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If an employer still wants to protect their employees’ privacy, they can choose flexible monitoring software, such as Insightful. This way they can exclude certain apps or websites from monitoring or just blur screenshots. Good examples of the activities some employers leave out of monitoring are internal messaging apps.

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Is monitoring keystrokes on company computers legal?

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Yes, in the United States, keystroke logging, which records everything typed on company devices, is legal. Such software may even be configured to alert employers to specific words or phrases that could be deemed inappropriate or harmful to the company.

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Are employers required to obtain consent for employee monitoring?

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Just like when it comes to informing workers about monitoring, this question has two answers. The federal law does not mandate employers to secure consent before implementing monitoring in the workplace. 

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Only in some states consent to monitoring is required. Again, these are Connecticut, New York, Texas, and Delaware. In these jurisdictions, monitoring without consent may be regarded as unlawful surveillance. Employees can potentially even sue the employer for the invasion of privacy if monitoring is conducted without obtaining proper consent.

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Are monitoring policies mandatory in the workplace?

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Yes, having explicit monitoring policies is mandatory for every business operating in the US. These policies should be detailed and presented to employees in the form of an official document. This document must cover the scope and methods of monitoring. It should also specify the limited privacy expectations on company devices and ensure that personal data unrelated to work is not collected or disclosed without restrictions.

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The employees should be introduced to these policies as soon as they join the company and required to acknowledge them in writing.

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Can employers monitor employees during breaks?

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Monitoring during breaks is legal, especially if it involves company equipment like computers. Employers are allowed to monitor workers to ensure there is no misuse of the internet or company devices during breaks. Just like with monitoring during work hours, some states might require informing employees or obtaining consent for such monitoring.

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Are employers required to inform employees about what is being monitored?

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When using company-owned devices, employees’ activities are typically not considered private under US law. This is why employers may not be obligated to disclose monitoring details. 

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Still, it is generally recommended to inform employees about the specifics of monitoring as open communication is the basis of trust and company loyalty.