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It is not ethical to monitor the behavior of employees when they are not at work. Employees of government and public entities have a constitutional right to privacy that protects them from most employer monitoring of, or even inquiring about, their off-the-job conduct. For public employers, this type of monitoring is largely off-limits. In the private sector, a number of laws prohibit employers from intruding into their employees' lives outside of work (Johnson, 2015). Some state constitutions specifically provide for a right to privacy, which prevents private employers from looking into their employees' off-duty activity. An employer is never allowed to physically enter an employee's home without consent (even when searching for allegedly stolen property belonging to the employer (Verbos et al., 2007). Under the National Labor Relations Act (NLRA), it is illegal as well as unethical for an employer to monitor or conduct any surveillance of employee union activities, including off-the-job meetings or gatherings.
References
Johnson, C. E. (2015). Meeting the ethical challenges of leadership: Casting light or shadow( 5th ed.). Thousand Oaks, CA: SAGE Publications.
Verbos, A., Gerard, J., Forshey, P., Harding, C., & Miller, J. (2007). The positive ethical organization: Enacting a living code of ethics and ethical organizational identity. Journal of Business Ethics, 76(1), 17-33.