See, that's what I'm not sure about. A person has a reasonable right to privacy even on business property. If I use the computer that was assigned to me during lunch to check my bank account, do my employers have a right to know my username and password? Just a hypothetical.
The reason I ask about differences in states is because I'm wondering if this might legally be like recording a conversation. In some states, both parties have to explicitly consent and in others, not.
If I explicitly consent that I will be keylogged, then so be it, but I think I'd be pretty upset if I found out about this after the fact.
The nature of my work makes this a non-issue for me, but I think it'd be interesting to know. Any lawyers out there?