Not only is this creepy and a blatant invasion of privacy, the Maryland legislature just passed a law to make it illegal and several other states are poised to follow suit, including California, Illinois, Michigan and Minnesota.
I don't know how widespread this practice really is, but given the current employment environment, it is good to be armed with knowledge about what to do. Be careful: if you are already employed and your company has as a social media "rules of engagement" policy, you might be caught off guard. But the perspective changes if you are seeking employment. What's next? Will someone ask you for your mobile phone call records?
For some great background on this topic, I suggest a series of stories that have been posted over at ZDNet's "Friending Facebook" blog: