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"Spying Employers Raise Legal Hackles":
The National Law Journal has this interesting report.
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However, it can easily be abused. Managers often encourage employees to take accrued sick days that would be lost under use-it-or-lose-it policies. .
One remembers the reports of mortgage companies whose their employees instructed applicants what to put on the applications, and who would then claim that compliance with those instructions constituted fraud on the mortgage compny if there was subsequently a problem.
One could imagine employers falling into such a practice. The law should not permit them to benefit if they do so.
Sincerely,
Corkie the Dog
And even setting aside compensation to the employee, there are other costs to the employer. Like holding open a position for someone who's out for up to three months.
I think the surveillance thing goes a bit far. After twelve weeks employees are out of paid leave, and out of protection, and in my experience decide they'd rather not come back at all than face nine full months of having no time off. But then, I hope that all of these companies do a very public, highly visible job of surveillance on their possibly-malingering employees -- this sort of lawsuit, along with emailed layoff notices and such -- is an excellent way of figuring out the creepiness factor of a potential employer.