Here's the original statement from Facebook Chief Privacy Officer for Policy Erin Egan:
Facebook takes your privacy seriously. We'll take action to protect the privacy and security of our users, whether by engaging policymakers or, where appropriate, by initiating legal action, including by shutting down applications that abuse their privileges. While we will continue to do our part, it is important that everyone on Facebook understands they have a right to keep their password to themselves, and we will do our best to protect that right.
Here's the clarification, courtesy of a Facebook spokesperson:
We don't think employers should be asking prospective employees to provide their passwords because we don't think it's right the thing to do. While we do not have any immediate plans to take legal action against any specific employers, we look forward to engaging with policy makers and other stakeholders, to help better safeguard the privacy of our users.