That's a nice piece of sensationalism. The answer is easy:
Put your policy on a paper titled "Consent Form" and make the employee sign it. As long as you're not violating local law it will hold up in court.
"This is not legal advice. I am not an attorney, nor am I trained in law in any way."
here is a question (based on the info in the above referenced article) - if i did a grep word search on a local pc and it revealed messages (from a web-based email program such as yahoo or hotmail) would that be considered monitoring?
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