I don't think it was ever widespread, but sure, it happened in a handful of places.

http://www.aclu.org/blog/technology-and-liberty/want-job-pas...

http://www.govtech.com/policy-management/Montana-City-Asks-J...

How interesting that in both of those incidents, the employer was a government agency.

Interesting point, though the I wonder if the data is a bit skewed since gov't agencies tend to attract more lawsuits.

Well, given what I was asked when a friend was getting a Federal clearance, I can imagine it would pop up in government. Although, to be fair to the interviewer and FBI, they were looking for stuff that was not public but could be used for blackmail.

One of the danger signs used to be debt held by people in the defense industry. Someone paying off the debts for some secrets was modus operandi.

No. But politicians won't let manufactured outrage go to waste.

Actually it did happen to my sister.

Any details on who the employer was, what the position was, and what was requested?

It was for an entry-level baking position at a large grocery store/chain and they just requested her Facebook credentials so they could "do a background check".