Employee monitoring laws in the US and EU explained( 2025 guide)

Are you putting your business at risk by monitoring employees the wrong way? What happens if you fail to follow employee monitoring laws?

Many companies use employee monitoring software to track employee activity, improve productivity, and protect company data. But without a clear understanding of employee monitoring laws, businesses can easily cross legal lines, leading to hefty fines, lawsuits, and a loss of employee trust.

Is employee monitoring allowed? 

And how can you legally monitor employees while keeping your company safe? 

This guide will walk you through the laws, risks, and best practices for staying compliant in both the United States (US) and the European Union (EU).

We’ll explore the different aspects of employee surveillance and the legality of different monitoring methods. We’ll also cover the main legal risks of employee monitoring and a few tips to avoid them.

Table of Contents

What is employee monitoring?

Before we get into the laws covering specific monitoring methods, let’s first cover what employee monitoring is and why companies do it.

Employee monitoring is the practice of tracking employee activity in the workplace. Companies do this to ensure productivity, security, and compliance with company policies.

In fact, A survey by ExpressVPN found that 78% of employers use employee monitoring tools. However, 59% of employees feel anxious about being monitored, which suggests that many companies aren’t clearly communicating their monitoring policies. This lack of transparency can lead to mistrust and lower employee morale.

Now, you may be wondering why companies monitor their employees.

Why do companies monitor their employees?

Companies monitor their employees for several key reasons:

• To boost productivity and maintain focus – Monitoring helps businesses ensure that employees stay on task during work hours and use company resources efficiently. It can also help identify bottlenecks and improve workflows.
• To protect company data and security – Tracking internet usage, employee emails, and file sharing helps prevent data breaches, insider threats, and cybersecurity risks. Companies also use monitoring tools to ensure compliance with data protection regulations.
• To improve accountability and performance – Many businesses use time tracking tools and performance analytics to evaluate employee productivity. This data helps managers make informed decisions about workload distribution, promotions, and training needs.
• To prevent misconduct and policy violations – Employers monitor employee activity to detect issues like fraud, harassment, or policy violations. For example, monitoring emails and chat messages can help prevent inappropriate behavior or security threats.
• To ensure compliance with industry regulations – In industries like finance, healthcare, and legal services, strict regulations require companies to track and store employee communications. Monitoring helps businesses comply with privacy laws and avoid legal penalties.
• To protect company assets and resources – Employers use GPS tracking, video surveillance, and computer monitoring to prevent theft, misuse of company property, or unauthorized access to sensitive areas.
• To support remote and hybrid work management – With the rise of remote work, businesses use employee monitoring software to track work hours, ensure employees are engaged, and maintain collaboration across teams.

What are some common forms of employee monitoring?

An employer can choose from various employee monitoring methods or use them in combination.

Common types of employee monitoring

Here are the most common ways employers monitor employees:

• Computer monitoring – Tracking employees’ computer activity, apps, and websites.
• Keystroke logging – Recording keystrokes to measure productivity and detect security risks.
• Social media monitoring – Reviewing social media accounts to enforce company policies.
• Video surveillance – Using workplace surveillance cameras for security.
• Phone call monitoring – Tracking phone conversations and voicemails for quality control.
• Personal device monitoring – Overseeing internet usage or work activity on personal devices under BYOD policies.
• GPS tracking – Monitoring employees’ locations during work hours, especially for drivers and field workers.

While these monitoring practices can benefit companies, privacy laws set strict limits on how and when employers can track employees.

These monitoring practices can benefit companies by improving security and productivity, but not all methods are the same. Some types of workplace monitoring are more invasive than others, raising concerns about employee privacy rights and compliance with privacy laws.

Invasive vs. non-invasive employee monitoring

Employee monitoring methods can be broadly categorized as invasive or non-invasive, depending on:

• What is being monitored?
• Whether the employee is aware of being monitored?

If an employer collects personal information or tracks employees without their knowledge or consent, it qualifies as invasive monitoring. This distinction is important because privacy laws in the US and EU set strict regulations on how employers can monitor their workforce.

Invasive monitoring can include

• Using employee monitoring software that runs in the background without the concerned team member’s awareness.
• Monitoring remote employees through keystroke and screenshot tracking on computers.
• Tracking employee activity after their work hours secretly.
• Recording phone conversations and private messages without the participants’ consent.

However, employee monitoring doesn’t always invade employees’ privacy, mainly when you communicate and obtain their consent. This helps to maintain healthy employer-employee relations and establish workplace fairness. These, in turn, positively affect employee morale and productivity.

Here are a few examples of non-invasive electronic monitoring practices

• Using monitoring software that lets employees turn it on or off when they sign in or out from in-office or remote work.
• Using visibly placed video surveillance cameras in shared spaces.
• Monitoring the company-owned workstations with prior information to the employees.
• Recording phone calls with the participants’ consent.

Now that we’ve covered the fundamentals of employee monitoring let’s get to its legal aspect.

Is employee monitoring legal in the United States?

Yes, employee monitoring is legal in the US, but businesses must follow federal and state laws to stay compliant and avoid legal trouble. While federal laws allow monitoring in most cases, some state laws provide extra protections for employees.

Let’s break down what you need to know.

Federal laws on employee monitoring

The US has several federal laws that outline what employers can and cannot monitor:

• Electronic Communications Privacy Act (ECPA) – Employers can monitor employee communications on company-owned devices if there’s a legitimate business reason. However, some states require advance notice or employee consent before tracking emails, messages, or calls.
• Stored Communications Act (SCA) – Employers can access emails and messages stored on company servers. But monitoring personal emails or messages on personal devices without permission can violate privacy laws.
• National Labor Relations Act (NLRA) – This law protects employees’ rights to discuss wages, working conditions, and unions. Employers cannot use monitoring tools to spy on union activities or intimidate employees.

While federal law generally supports workplace monitoring, some states add extra protections that businesses must follow.

State-specific laws on employee monitoring in US

Laws about monitoring employees can vary from state to state. Some states require written notice, while others restrict certain types of monitoring.

Here are some key state laws:

• California – The California Consumer Privacy Act (CCPA) requires employers to tell employees if they are being monitored and explain how their data will be used and stored.
• New York – Employers must notify employees in writing before monitoring emails, internet use, or employer’s computer activity.
• Connecticut & Delaware – Employers must get written employee consent before tracking electronic communications or using video surveillance in the workplace.
• South Carolina – This state limits wiretapping and interception of private employee conversations, protecting employees’ workplace privacy.

Since state laws differ, businesses should check the specific rules in the states where they operate.

How to stay compliant with US employee monitoring laws

To avoid legal trouble, businesses should follow these best practices:

• Know your state laws – If your company operates in multiple states, research each state’s specific regulations on employee monitoring.
• Be transparent – Let employees know what will be monitored and why. Use a written notice, company policy, or employee handbook to explain monitoring procedures.
• Get employee consent – In states that require it, always obtain written approval before monitoring employee emails, phone calls, or online activity.
• Use ethical monitoring practices – Avoid excessive tracking that could violate employee privacy or create a toxic work environment.

By following federal and state laws, businesses can legally monitor employees, protect company data, and maintain a fair and transparent workplace.

Is employee monitoring legal in Europe?

Yes, monitoring employees is legal in Europe, but businesses must follow strict privacy laws to avoid legal trouble. The General Data Protection Regulation (GDPR) sets the rules for how and when companies can track employees. Some EU countries even have extra protections to ensure that monitoring isn’t too invasive.

Let’s break it down in simple terms.

GDPR: The main law for employee monitoring in Europe

The General Data Protection Regulation (GDPR) is the primary privacy law that controls how businesses monitor employees in the European Union (EU) and European Economic Area (EEA) (Iceland, Liechtenstein, and Norway).

Even companies outside the EU must follow GDPR if they have employees who are EU citizens.

What does the GDPR require?

If you want to monitor employees in the EU, you must:

• Have a valid reason – You need a legitimate business purpose, such as security, preventing data breaches, or ensuring compliance.
• Be transparent – Employees must know what is being tracked, why, and how their data will be used.
• Only collect necessary data – Avoid excessive tracking, like monitoring keystrokes, private messages, or social media.
• Keep employee data secure – You must protect any monitored data from unauthorized access.
• Respect employee rights – Employees can request, correct, or delete their data in some cases.

Companies that don’t follow GDPR can face massive fines—up to €20 million or 4% of global revenue!

Since GDPR applies to all EU countries, businesses must also check if any country has stricter rules.

Country-specific employee monitoring laws in Europe

Some EU countries require written consent before monitoring, while others limit certain types of tracking.

Here are a few examples:

• Germany – One of the strictest. Employers must get written consent before tracking emails, internet usage, or computer activity. Covert surveillance is almost always illegal.
• France – Employers must inform employees in writing before using monitoring software or workplace cameras. Hidden cameras are not allowed.
• Spain – Monitoring policies must be included in employment contracts. Secret tracking is only allowed in cases of serious misconduct.
• Italy – Businesses need labor union approval before tracking internet use, emails, or workstation activity.
• Netherlands – Strict rules on email and social media monitoring. Employers can only check work emails if there’s a clear legal reason.

Since laws vary across Europe, businesses should check the specific monitoring laws in each country where they operate.

How to stay compliant with european employee monitoring laws

To stay out of legal trouble, businesses should follow these best practices:

1. Follow GDPR and local laws

GDPR applies across the EU, but some countries require additional consent or ban certain tracking methods.

If your company operates in multiple EU countries, it’s safest to follow the strictest laws.

2. Be transparent about monitoring

Employees should always know what’s being tracked and why. You can:

• Include monitoring policies in the employee handbook.
• Add clear policies in employment contracts.
• Send a digital notice explaining tracking methods.

Being upfront builds employee trust and prevents legal issues later.

3. Get employee consent when required

While GDPR doesn’t always require consent, some EU countries do.

For example:

• Germany and Italy need written consent before monitoring emails.
• France and Spain require employees to be notified before tracking starts.

Adding monitoring policies to employment contracts ensures compliance.

4. Avoid invasive tracking

Employers should only monitor what’s necessary and avoid:

• Keystroke logging without consent.
• Tracking social media usage.
• Secretly recording private messages.

Excessive tracking can violate privacy laws and damage employee trust.

5. Conduct a Data Protection Impact Assessment (DPIA)

If your monitoring includes sensitive employee data, you may need a DPIA to:

• Check privacy risks.
• Ensure compliance with GDPR.
• Avoid legal penalties.

Using GDPR-compliant employee monitoring software helps companies track workplace productivity while respecting employee privacy.

How to legally and ethically monitor employees: 8 common methods & best practices

Conclusion

Employee monitoring is a powerful tool for improving productivity, security, and compliance—but it also comes with serious legal and ethical responsibilities. Without clear policies and respect for employee privacy, businesses risk lawsuits, fines, and damaged trust.

So, is your company monitoring employees the right way? Are you confident that your practices comply with US and EU laws?

To stay compliant, businesses need the right tools and strategies. Time Doctor helps you track productivity transparently, ensuring compliance with employee monitoring laws while maintaining trust and fairness in the workplace.

Get started with Time Doctor today and implement ethical, legal, and effective employee monitoring.