The City of Bozeman, Montana will no longer require Facebook passwords as part of its application process, as reported in Delaware Employment Law blog.  That was a risky decision.  How many applicants would pass up this relatively large employer (in that neck of the woods) if they have to reveal too much.  Too, the city is a government entity.  Requiring a Facebook password would present privacy issues the city need not face.  

But, take this as a warning – there may be more employers out there considering such a measure.  The best protection for any employee is to simply be careful about what you put on Facebook, Myspace, etc.