Remote work has reshaped the modern workplace, with businesses embracing flexibility to attract and retain top talent. According to a recent study, over58% of the workforce now engages in some form of remote work, increasing reliance on employee monitoring tools to track productivity and performance.
For HR leaders and business executives, monitoring remote employees offers valuable insights into productivity, collaboration bottlenecks, and operational efficiency. However, the shift to remote work also made86% of employees believe it should be a legal requirement for employers to disclose if they use these monitoring tools.
Complying with key federal, state, and international laws is essential to ensure monitoring practices respect employee privacy while protecting employers from costly legal repercussions.
What is Employee Monitoring?
Defining Employee Monitoring in Remote Work
Employee monitoring refers to tracking employee activity, communication, and productivity—often through software, devices, and analytical tools. In remote work environments, companies increasingly monitor:
Keystrokes and screen activity
Application and website usage
Location data via devices or VPNs
Video surveillance through webcams (in rare cases)
Key Federal Laws Governing Employee Monitoring
Electronic Communications Privacy Act (ECPA)
TheECPA governs the interception and monitoring of electronic communications, including:
Prohibiting unauthorized interception of emails, calls, and online messages.
Requiring employee consent for certain types of monitoring, particularly for personal devices or communications.
National Labor Relations Act (NLRA)
The NLRA protects employees’ rights to engage in protected concerted activities—discussions about working conditions, wages, or union organizing. Abusive electronic monitoring that discourages or interferes with these activities may violate federal law.
International Regulations
General Data Protection Regulation (GDPR)
For companies interacting with EU-based employees,GDPR sets strict standards on:
Consent for data collection and monitoring.
Providing clear notice about monitoring practices.
Ensuring data minimization and purpose limitation.
Granting employees the right to access and delete personal data.
Other International Regulations
Canada’s PIPEDA governs private-sector data collection.
Biometric Information Privacy Act (BIPA) mandates informed consent before collecting biometric data (fingerprints, facial scans). It also requires secure storage and timely destruction of biometric data.
New York
Electronic Monitoring Law (2022) requires written notice and employee acknowledgement before monitoring telephone, email, or internet use.
Connecticut
Electronic Monitoring Notice Law requires employers to inform employees of monitoring policies, except in cases of suspected unlawful conduct.
Delaware
Monitoring Notification Law requires employers to provide notice before monitoring communications or internet use.
Consent is a cornerstone of lawful employee monitoring. Employers should:
Provide clear, written policies explaining monitoring tools and purposes.
Obtain signed consent forms acknowledging employees understand the monitoring scope.
Regularly update policies as new technologies or regulations emerge.
Balancing Monitoring with Privacy
Employers should:
Employers should only collect data that relates to job performance and company operations. This helps protect employee privacy.
Monitoring should only take place during working hours. Companies need clear policies that stop tracking personal activities outside of work time.
Companies should collect only the personal data that they really need for business. They must follow privacy laws and respect employee consent at every step.
Employers should make clear, written monitoring policies. These policies should explain what data they collect, why they need it, and how they will use it. This way, employees can understand the process and trust their employer.
Unethical Employee Monitoring Practices
Employers should avoid:
Invasive surveillance, such as webcam spying or tracking personal devices.
Secret monitoring without proper disclosure and consent.
Excessive surveillance can increase employee stress, lower morale, and damage long-term trust between employees and management.
Misuse of data, such as repurposing data for unrelated HR actions.
Data Protection and Security Best Practices
Safeguarding Collected Data
All collected data should be encrypted when stored and when sent. This keeps it safe from unauthorized access or breaches.
Access to employee monitoring data should only be given to authorized staff who need it for work. All access must be recorded for accountability.
Organizations should conduct regular audits of their data handling and monitoring practices to confirm they comply with relevant laws, internal policies, and industry standards, and to identify and address any potential vulnerabilities.
Consequences of Non-Compliance
Legal Penalties
Fines under GDPR can reach €20 million or 4% of global revenue.
Non-compliance with BIPA can lead to class-action lawsuits.
Violations under the ECPA can result in federal fines and lawsuits.
Reputational Damage
Employees lose trust when monitoring is secretive or excessive.
Compliance failures often lead to negative press and talent loss.
Mitigating Breaches
Investigate incidents immediately.
Notify affected employees and authorities.
Review and update policies to prevent recurrence.
Worklytics: A Better Alternative
Rather than invasive monitoring, Worklytics offers privacy-first workforce analytics that focuses on team-level productivity trends, helping companies identify collaboration bottlenecks and optimize workflows—without compromising employee trust. All data isanonymized at the source, ensuring compliance with privacy laws.
FAQs
Is it legal to monitor employees without their knowledge?
Generally, no—most laws require transparency and consent.
How can companies protect monitoring data?
Use encryption, limit access to authorized users, and conduct regular security audits to protect employee data.
What are the risks of excessive monitoring?
Low morale, legal penalties, and employee turnover are common risks of excessive employee monitoring.
Is employee monitoring recommended?
Employee monitoring erodes trust, raises legal risks, and harms productivity and company culture.
How can employees protect their privacy?
Understand your company’s monitoring policies, only use work devices for work tasks, and speak with HR if you have any concerns or need clarification.
Conclusion
With remote work becoming more common, many businesses turn to employee monitoring to track productivity — but this strategy often does more harm than good. Over-monitoring can break down trust, increase employee stress, and create a workplace culture based on surveillance. These factors ultimately lower employee engagement and hurt long-term productivity.
Instead of invasive tracking, companies should prioritize transparent, privacy-first approaches that respect employee rights while offering actionable insights into team-wide performance. At the same time, employers must carefully navigate a complex web of federal, state, and international laws to ensure their practices remain lawful, ethical, and aligned with employee privacy protections.
By focusing on ethical data use and respect for employee privacy, businesses can foster a culture of trust, compliance, and productivity in the new era of remote work.
