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When an entity pays a person money to perform work, that entity is certainly entitled to that work and to verify that the work is actually being performed.
All the employer need do to comply this law (apparently) is to post a sign at all entrances to the facility proclaiming that entering the building is consent to be surveiled. Login screens display a notice that use of the computer is consent to be surveiled in all activity conducted on that computer. Post a similar message on telephones. Now the employees know they are under survelliance.