Damian,

The research I conducted shows that the law supports an employers legal
right to look at any and all e-mail generated by, stored in, or sent to
theiur e-mail system(s).

The ECPA does not protect the privacy of the employee in this situation. 
There are two reasons for this.  The clearest on is consent.  The ECPA
doesn't apply if one or more of the parties consents.  In many companies,
consent to an "e-mail policy" that says the company monitors use of e-mail
is a condition of employment.  Even if it isn't, the company still has a
legal right through "business extension" meaning that through the normal
course of business, monitoring e-mail content is allowed.  Since companies
are at a liability for any e-amil sent via their systems, it isn't a
stretch to say that an e-mail content scanner, whether thats software or a
person, is "the normal course of business."

http://www.sunbelt-software.com/ntsysadmin_list_charter.htm

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