San Francisco Employment Privacy Law Lawyer & Attorney : Littler Mendelson Law Firm : Employment Related Privacy Issues

The Los Angeles Times reported on June 19, 2008, that the Ninth Circuit’s decision in Quon v. Arch Wireless Operating Co., “sharply limited the ability of employers to obtain e-mails and text messages sent by employees on company-financed accounts.” And many major news outlets echoed this sentiment: "Court Rules Employee Text Messages Are Private," "SF Court Protects Privacy of Work Communications," "Stop Snooping on Email, Court Tells Some Nosy Bosses." However, the assertion of the LA Times reporter, while literally true, is pure hyperbole when viewed in the context of a real-world workplace.

The Ninth Circuit ruled in Quon that a text-message provider, Arch Wireless, violated the federal Stored Communications Act (the “Act”) by disclosing to the City of Ontario Police Department sexually explicit text messages sent by Sgt. Quon using a City-issued text-message pager, even though the City was the subscriber on the service contract. The Court explained that the Act prohibits providers of an “electronic communication service” — Internet Service Providers (ISPs) and text messages services, for example — from disclosing stored e-mail or text messages without the consent of the sender or recipient. At first blush, this ruling appears to present a dramatic shift in the balance of power between employers and employees in the spy vs. spy world of workplace monitoring.

Not so fast: Employers can easily and lawfully circumvent the Court’s ruling. Employers, for example, can prohibit employees from conducting any company business other than over the corporate network, and they can limit company-issued electronic devices to those, such as a Blackberry, that can be configured to route all communications through the corporate network. Notably, the Ninth Circuit’s decision expressly reaffirmed the well established rule that employers can defeat an employee’s expectation of privacy by distributing a policy unambiguously stating that employees communications using corporate resources will be monitored and are not private.

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In a highly anticipated decision, the National Labor Relations Board has emphatically landed on the side of employers whose policies bar employees from using corporate e-mail resources for union activities.

In The Guard Publishing Co. d/b/a The Register Guard, the Board, in a 3-2 decision, held that “employees have no statutory right to use an employer’s equipment or media for Section 7 communications.”  Section 7 of the National Labor Relations Act  encompasses communications about virtually all union activities by employees, including solicitation, organizing, grievances, picketing, strikes, and discussions about the terms and conditions of employment.  In light of this ruling, an employer may, in the words of the Board, “lawfully bar employees’ nonwork-related use of its e-mail systems,” including use for union activities.

There is a caveat, but as defined by the Board, the caveat is a narrow one:  Employers can not act “in a manner that discriminates against Section 7 activity.” (emphasis supplied).  Significantly, the Guard Publishing decision substantially narrows the prior definition of “discrimination” for purposes of analyzing whether an e-mail policy (or any other policy restricting Section 7 activities) on its face, or as enforced by the employer, interferes with Section 7 rights.

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