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The Current State of the Law

At present, the most important governing statute is the Electronic Communications Privacy Act (ECPA), a federal law that generally prohibits the "interception" and disclosure of wire, oral and electronic communications. But the ECPA defines "interception" in a very narrow manner. Courts have generally interpreted the term to apply only to the review of an e-mail during its actual transmission from sender to recipient. Reviewing the e-mail after it is transmitted - for example, when it resides on the company's e-mail server - is not an "interception" within the meaning of the statute.

In addition, the ECPA permits the interception of an electronic communication if: 1) one party consents in advance; 2) the employer furnishes the e-mail service; and 3) the employer intercepts the e-mail in the ordinary course of business. Requirements 2 and 3 generally take care of themselves. As for 2, so long as the e-mail was sent on a company system (as opposed to the employee's personal AOL account), that is a non-issue. As for 3, the term "ordinary course of business" has been interpreted by the courts to mean anything to do with quality assurance, theft prevention, promoting employee productivity, avoiding liability, and so on.

But what about requirement 1, mandating consent? For years, we (as well as many other lawyers and consultants) have been preaching the message that every employer must promulgate and distribute to all employees an e-mail/internet policy which, in addition to specifying the dos and don'ts of e-mail and internet use, advises the employees that their e-mails and internet use are subject to employer monitoring. Consent can be established by proving that the employee received such a policy. (Word to the wise: if you do not have an appropriate e-mail policy that has been reviewed by competent counsel, you are running huge and avoidable liability risks for a great many other reasons as well.)

So, from the employer's point of view, what's the problem?

Counsel Consulting Group LLC helps companies throughout the United States avoid employment and HR-related claims and liabilities. CCG assesses existing policies, procedures and problem areas; it provides customized liability-avoidance training to managers and executives; and it designs and implements business techniques that reduce employment liability risks on a long term basis. CCG also offers specialized workshops for managers and HR executives, customized consulting in focused employment-related areas, and CD-ROM and web-based training alternatives. For more information, contact us at info@powelltrachtman.com and visit our website at www.counselconsulting.com.

Powell, Trachtman, Logan, Carrle & Lombardo, P.C. is a full service law firm with offices in suburban Philadelphia, PA, Harrisburg, PA and Cherry Hill, NJ. Powell Trachtman represents a variety of commercial enterprises, entrepreneurs and business executives in respect to their litigation, litigation avoidance planning, business formation, business transactions, estate and tax planning, and other needs. We are also approved defense counsel for numerous insurance carriers in matters pertaining to professional malpractice, products liability, employment practices, directors and officers liability, and many other fields. For more information, contact us at info@powelltrachtman.com and visit our website at www.powelltrachtman.com.

©Copyright 2003 Powell, Trachtman, Logan, Carrle & Lombardo P.C. All rights reserved, except that recipients hereof are permitted, for noncommercial purposes, to provide copies or excerpts, with full attribution to us, to other interested persons for their personal use. Avoiding Lawsuits is distributed for general informational purposes only. It is not a substitute for personalized legal advice from a competent attorney.

Problems Prevented and Solved

$37 million verdict in contractor/municipality dispute - read more

Successful resolution of a deficient design claim for a designer and construction manager of a warehouse distribution facility - read more

Successful settlement in favor of architect on highway design claim - read more

Successful resolution of claim against architectural firm involving design of concert hall - read more

Successful resolution of sexual harassment claim - read more

Negotiation of a multi-million dollar statewide strategic sourcing contract - read more

Updating estate planning documents reveals major flaws - read more

Successful resolution of claim by business buyer against business seller - read more

Successful negotiation with the IRS to eliminate mounting interest and penalties for estate heirs - read more

Acquisition, financing and development of manufacturing facility - read more

Defense verdict in whistleblower/wrongful termination claim - read more

Successful resolution of multi-million dollar hotel water intrusion/mold growth claim - read more

Successful representation of design professional in historic building damage claim - read more

Defense verdict for accounting firm in "deepening insolvency" case - read more

Acquisition of industrial property requiring environmental remediation - read more

Successful settlement of architectural malpractice claim in roof collapse case - read more

Successful settlement of action against architect in multi-phase condominium project - read more

Successful resolution of quadriplegia personal injury claim against college - read more

Defense verdict in favor of lift manufacturer - read more

Successful enforcement of covenant not to compete - read more

Six-figure settlement for manufacturing firm against consultants - read more

Successful defense in architectural malpractice claim involving medical facility - read more

Representation of retail distributor in acquisition of store locations - read more

Representation of manufacturing entity in asset-based lending transaction - read more

Successful resolution of gender and race discrimination claim - read more

Creation of ESOP as part of founder's succession plan - read more

Creative estate tax planning for the owner of a Subchapter S Corporation - read more

Representation of numerous companies in structuring reductions in force - read more

Successful defense of computer hardware manufacturer - read more

Negotiation and finalization of software transfer transaction - read more

Representation of company in the negotiation and drafting of executive employment agreements - read more

Examples of "preventive law" advice provided to clients - read more

Successful resolution of shareholder buy/sell claim - read more

Successful defense of unfair competition action - read more

Successful defense of electrical product manufacturer - read more

Successful defense of employee's pregnancy discrimination and family leave act claims - read more

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