I think this is an example of somewhere where a legal solution is preferable to "plausible deniability" - at least in terms of ease of use for the majority of FaceBook users :)

Right, but then the employee will only ask for both your passwords…

not if this is not the default. If they were to implement it they would do it like Truecrypt where you are able to choose between "normal" encryption and creating a hidden volume which allows for plausible deniability ( see https://en.wikipedia.org/wiki/Plausible_deniability#Use_in_c... ).

That would be the initial reaction for most job seekers. And I'm betting that's exactly what facebook was trying to prevent with this move.

Did I miss the sarcasm? How is that clear to you?

I thought asking for personal information like marital status , age, etc.. is illegal in the U.S.