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I have a Windows 7 home network running. I connect my work laptop up to my home network and connect to work using a VPN. Is it possible for my employer to see what I'm doing on any computer connected to my home network?

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No.

All the VPN clients I've seen are point-to-point tunnels. The router/gateway for your home LAN is not being reconfigured. Rather, when you start the VPN, a new virtual network interface is being created on your work laptop that is an encrypted tunnel to your employer's internal network, and then the laptop's default route is changed to point to the tunneled interface. Indeed, most VPN clients quietly squelch all other interfaces while running, so that the machine can't become a router to an external network.

So any activity you do on the work laptop over the VPN can be monitored, but no other machine on your LAN will be affected. In fact, that's kind of the point of the 'P' in VPN -- it's private.

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    I largely agree with this, save that in many cases the VPN will only add routes (across the VPN) to reach internal servers of the business, allowing all other traffic out its regular path - this is both faster and less invasive. In the case that the VPN does add a default route, then all traffic FROM THE LAPTOP for the wider Internet can be intercepted by the business as it will go past the VPN, but not other traffic on the home network.
    – davidgo
    Oct 24, 2013 at 2:53

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