The article doesn't mention all of the alleged offenses regarding the lawsuit. There's definitely more than just a "spying program" here:
* Restrict the Googlers’ right to speak, right to work, and right to whistle-blow.
* Prohibit Googlers from speaking plainly – even internally – about illegal conduct or dangerous product defects, because such statements might one day be subject to discovery in litigation or sought by the government.
* Prohibit Googlers from telling a potential employer how much money they make, or what work they performed, when searching for a different job.
* Prohibit Googlers from using or disclosing all of the skills knowledge, acquaintances, and overall experience at Google when working for a new employer.
* Prohibit Googlers from speaking to the government, attorneys, or the press about wrongdoing at Google.
* The policies even prohibit Googlers from speaking to their spouse or friends about whether they think their boss could do a better job.
There were alleged training practices, policies, and documents outlining these offenses and they are written up pretty plainly in the suit itself. Makes for better, more detailed reading, than this Engadget piece.