The City of Bozeman, Montana asked job applicants to provide their user names and login 
information to common social networking sites on their job applications. As you may expect, this has caused a major uproar from privacy groups.
Just over one-year ago, I was asked by employers about what legalities were involved in Googling
The issue in Moreno v. Hanford Sentinel, Inc., as stated by the court, is:
… whether an author who posts an article on myspace.com can state a cause of action for invasion of privacy and/or intentional infliction of emotional distress against a person who submits that article to a newspaper for republication.
The case
Google Latitude, a new Google application allows users to track the physical location 
of other people through a mobile phone or computer. While the GPS tracking technology is nothing new, the amazing aspect of this is how inexpensive tracking technology has become. Many employers have already implemented GPS tracking, but now with Google’s basically