Let me be more specific. All that is required is "reasonable suspicion" in order to require access to all the files on your computer, unencrypted. "Reasonable suspicion" is a very weak requirement, as you can see from the document linked to in the techdirt article, and is exactly the same as what is needed for an extended physical search or an extended search of non-electronic property. In other words, there are no special considerations that apply to property just because it is electronic.
http://www.techdirt.com/articles/20130308/13380622263/9th-ci...