Facebook threatens to sue employers who force employees to disclose their Facebook passwords

[Jenna]

"(W)e don't think it's right the thing to do," she said. "But it also may cause problems for the employers that they are not anticipating. For example, if an employer sees on Facebook that someone is a member of a protected group (e.g. over a certain age, etc.) that employer may open themselves up to claims of discrimination if they don't hire that person."
Earlier this week, the American Civil Liberties Union spoke out against the practice. The group said they've gotten multiple reports of people either being asked for their passwords or required to "friend" managers when they were applying for jobs.
Robert Collins of the Baltimore area testified before the Maryland Legislature in February that he was trying to reapply for his corrections officer job after taking a leave of absence when he was told he needed to hand over his password to prove he had no gang affiliations.
"I did not want to do it, but because I really needed my job and he implied that this was a condition of recertification, I reluctantly gave him the password," he told Maryland lawmakers, who are considering outlawing the practice.

In her post, Egan said that Facebook will consider going to court if it hears of the practice continuing.

It is already against Facebook's terms of service to share a password.
"You will not share your password, (or in the case of developers, your secret key), let anyone else access your account, or do anything else that might jeopardize the security of your account," the agreement reads.

More here:
Facebook speaks out against employers asking for passwords - CNN.com

[KaiGywer]

I haven't been asked to give away my password, but I was asked to log in to my Facebook and she looked at it for a few minutes. She then logged me off. I was in the room seeing the screen the whole time. I had no problem with that, but I would be more reluctant to give up my password since I use the same password on several things.