Old Dominion Freight Line Settles Illinois Biometric Privacy Lawsuit Over Fingerprint Scanning

Old Dominion Freight Line has reached a settlement agreement in a lawsuit alleging violations of the Illinois Biometric Information Privacy Act (BIPA). The case, filed in April 2023, addressed the company’s use of fingerprint scanning technology for employee time tracking through a Kronos time clock system.

The lawsuit focused on Old Dominion’s implementation of biometric time clocks that required employees to provide fingerprint scans for clock-in and clock-out procedures. The plaintiffs alleged that the company failed to obtain written consent for biometric data collection, did not properly inform employees about data storage practices, and failed to maintain a publicly available policy regarding data retention and destruction – key requirements under BIPA’s strict regulatory framework.

In December 2024, the company and affected employees submitted a joint notice of settlement to an Illinois federal court. While specific settlement terms remain undisclosed, a preliminary approval motion is expected to detail the agreement’s conditions and compensation structure.

The transportation industry has seen several significant BIPA-related legal actions. BNSF Railway Company reached a $75 million settlement with truck drivers in June 2024, while CSX Intermodal Terminals moved their case to state court for settlement in November 2020. Union Pacific Railroad currently faces ongoing BIPA litigation, highlighting the widespread impact of biometric privacy regulations on the sector.

Recent legal developments have substantially changed the BIPA landscape. A February 2023 Illinois Supreme Court ruling established that BIPA violations accrue with each individual scan or transmission of biometric data, significantly increasing potential damages for non-compliant companies. In August 2024, Illinois amended the law to restrict plaintiffs to a single recovery for multiple violations by the same entity, providing some relief to businesses facing multiple claims.

The settlement comes at a time of heightened focus on biometric privacy compliance in Illinois, where companies face statutory damages of up to $5,000 per intentional violation. Organizations implementing biometric time and attendance systems must now carefully evaluate their data collection practices, consent procedures, and retention policies to avoid similar legal challenges.

The case represents a broader pattern of BIPA enforcement actions targeting workplace biometric systems, with major retailers and employers facing similar lawsuits over their use of biometric time clocks. The growing number of settlements demonstrates the significant financial risks companies face when implementing biometric technology without proper privacy protections and informed consent procedures.

Sources: Land Line

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January 06, 2025 – by Cass Kennedy