What is 'time theft' and why are some employers so worked up about it'

I would assume that if an employer supplied a computer/laptop to an employee to work at home that there would be some type of monitoring going on as far as the computer's activity goes. I also recall reading something about video and audio recording being active so that they can see and hear whatever might be going on in the room one is working in.

You are quite correct. But there are also questions whether a company can monitor a private residence.

If they get their work done, who cares?

I worked for companies where going out by yourself for a smoke to clear your head and think about a solution and even taking a bathroom break was treated by management like it was some kind of 'time theft'.

When I was pissed off at work I'd go to the can and chuckle to myself "well that cost them $35 a pound"

That reminded me of a senior manager at a large corporation I worked for back in my early accounting/admin days. If there was a female employee he was looking for with a question or whatever and they weren't at their desk or in the copy room he would wait in the hall outside the ladies room. I remember him asking me to "go see if so-and-so was in there".

Not sure about the legalities of that. Ideally, I guess, you would have a room to work in where you could close the door to block out any other noise, like a TV or radio someone else in the house is listening to and of course other household noise. I doubt that everyone would have that.

Had to work as a Direcotry Service operator once long ago. The supervisors spent their time randomly listening in. So one day I get call and the usual redneck - Oh? A guy operator! You must be an effing fag!
I quickly shot back with "That's not what your wife says when you're at work..." and guess who's station was getting listened to!
Got called into the office with a female supervisor who leaned across the table and slapped me... on the shoulder! Good one! But his counts as a verbal warning, so don't do it again while I'm on shift cuz you don't need a written one and I don't want the paperwork!

This was in an office of 90% women who were supposed to put a flag on their desk and wait for permission to go take a piss!

Not sure about the legalities of that. Ideally, I guess, you would have a room to work in where you could close the door to block out any other noise, like a TV or radio someone else in the house is listening to and of course other household noise. I doubt that everyone would have that.

I'm pretty sure there is no way to override your constitutional right to privacy. But then again, I'm not a lawyer.

Besides, I don't see these companies complaining about time theft when employees have to answer calls and emails after hours for which they are not being paid.