I don't see where it says it's already a feature. The note itself (not that post) says it might be available in the future but it's not there right now:

Messages and files shared in 1-1 chats are only browsable and searchable in HipChat by the two people involved.

"While admins do not have access to browse or search 1-1 chats through functionality within HipChat, this is an option we may provide in the future for organizations to opt-in to. If made available, it will not be retroactive, and we will be sure to address how affected users can be notified that their chats are subject to viewing by their admins" http://help.hipchat.com/knowledgebase/articles/358098

It does say the organization can email them and ask for that so while technically possible it's not so easy for the admin to snoop.

I mentioned earlier in this thread, privacy was already kind of broken. Given your account was registered with organization email, admin could reset your password and look at your private chats (like when you leave a company). Doing that would perhaps be violation of terms, but I don't think many would care particularly in developing countries where legalities of such things are joke.

if said service is provided by the employer, they own the data/communications and have every right to monitor the service. same goes for work email: employers have access to this. it isn't illegal for them to access these communications done on a work account.

That depends heavily on local laws and you really can't make a blanket statement like that.

And laws be damned, it's often employee moral that takes a hit when employers snoop without consent, and that can be just as costly (if not more so) than a court case in many companies.

largely depends on the industry you work in.

a lot of us work in small dev shops, where we really like our privacy.

a lot of us also work in regulated industries, where if your employer is NOT logging, then your company gets fined by $government or $regulatingbody.