Epay Systems has agreed to pay $1,526,250 to settle a class action lawsuit alleging violations of Illinois’ Biometric Information Privacy Act (BIPA) tied to its employee timekeeping system. The case, filed as Mrozek v. Epay Systems Inc., claimed the company collected and stored employees’ biometric identifiers without the written notice, informed consent, or public retention policy required under BIPA. The settlement covers individuals who used Epay’s biometric time clocks in Illinois between May 17, 2019, and May 17, 2024.
Under the proposed agreement, eligible class members are expected to receive at least $1,000 per valid claim, with final amounts depending on the number of claims filed and court-approved deductions. The settlement allocates up to $579,975 for attorneys’ fees and litigation expenses, and a $7,500 service award for the class representative, pending final approval by the court.
Settlement Timeline and Terms
The court has scheduled a final approval hearing for November 18, 2025. Class members must submit claims or request exclusion by October 6, 2025. Payments are anticipated to begin approximately 30 days after final approval and the resolution of any appeals. The distribution timeline and individual award amounts will be determined once the total number of valid claims and administrative costs are known.
Epay Systems denies all allegations and any liability under BIPA, stating that it agreed to the settlement to avoid the costs and uncertainties of continued litigation. The settlement does not constitute an admission of wrongdoing.
Part of a Broader BIPA Litigation Trend
This resolution adds to a growing list of BIPA settlements in Illinois. Recent agreements include Saint Anthony Hospital’s $1.46 million settlement over fingerprint scan use in employee timekeeping, and Lytx’s $4.25 million settlement with truck drivers alleging improper biometric data collection. These cases underscore the legal risks facing companies that use biometric technologies without meeting BIPA’s strict compliance requirements.
Sources: ClaimDepot, PropertyCasualty360
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By the ID Tech Editorial Team
