I think this is the most misunderstood tech story of the month. I've had 3 people mention it to me. It did make me do a double-take at first, the reporting on this was very poor.

However, if you look at what I bolded, makes sense.

New Rules Make Firms Track E-Mails, IMs

WASHINGTON (AP) - U.S. companies will need to keep track of all the e-mails, instant messages and other electronic documents generated by their employees thanks to new federal rules that go into effect Friday, legal experts say.

The rules, approved by the Supreme Court in April, require companies and other entities involved in federal litigation to produce "electronically stored information" as part of the discovery process, when evidence is shared by both sides before a trial.

The change makes it more important for companies to know what electronic information they have and where. Under the new rules, an information technology employee who routinely copies over a backup computer tape could be committing the equivalent of "virtual shredding," said Alvin F. Lindsay, a partner at Hogan & Hartson LLP and expert on technology and litigation.

The court decided that you couldn't destroy evidence just because it was digital. Yawn.

Although it might surprise people that the Feds already make many industries save all incoming and outgoing mail from everyone in the firm. The Securities and Exchange Commission for example, requires that all email going into or out of brokerage houses be kept for (I think) 3 years. Employees are not allowed to use any mail except the in-house mail. If your broker mails you from his gmail account, he's breaking the rules.

Further, everything you type to your stockbroker is subject to be reviewed by the feds. But before you cry 'civil liberties,' all the same rules apply to paper too and have for years.