Reported could mean anything from bad to good.
The woman is not allowed to watch you in a mirror. Get her name and record the time of the incident and report it to your stae dept of labor and industry. They can only watch if they have reasonable suspicion that you were going to cheat on the test and obviously that wasn't the reason because she was trying to be sneaky about it. Never allow anyone to enter the room with you when taking a drug test. Jump on them about it and if they won't get out of the room either tell them you're going to go see an attorney or just stall her and say you can't pee. Then schedule another appointment to give yourself more time to think about your next step.