Pharma Logistics has agreed to a proposed settlement worth up to $75,000, now awaiting final court approval, to resolve a lawsuit alleging violations of Illinois’ Biometric Information Privacy Act (BIPA). The case centers on the company’s collection and storage of employee fingerprints for timekeeping purposes without obtaining proper consent.
The lawsuit claimed that Pharma Logistics failed to provide employees with written notice about its biometric data collection practices and did not secure the written authorization required under Illinois law before collecting fingerprint data. These requirements are central provisions of BIPA, one of the country’s strictest biometric privacy laws.
This development follows a similar case against Saint Anthony Hospital, which reached a $1.46 million preliminary settlement earlier this month for comparable BIPA violations related to employee fingerprint scans. Both cases underscore how employers’ use of biometric timekeeping systems has become a focal point for privacy litigation in Illinois.
BIPA requires that companies obtain explicit written consent before collecting or storing biometric data, and mandates that organizations provide clear information about how such data will be used, stored, and eventually destroyed. The law has been a catalyst for numerous class action lawsuits in Illinois, with other states now enacting or considering similar legislation to regulate biometric data practices more closely.
Under the proposed settlement terms, funds will be distributed to employees whose biometric information was collected during their employment at Pharma Logistics without the required consent. The company has agreed to the settlement without admitting any wrongdoing, maintaining that it denies liability for the alleged violations.
The Pharma Logistics case illustrates the growing legal risks employers face when deploying biometric systems without adhering strictly to privacy laws. As more states introduce regulations similar to Illinois’ BIPA, companies are under increased pressure to ensure they have proper policies, consent mechanisms, and disclosures in place when collecting sensitive biometric data.
These concerns have become especially relevant with Colorado’s new biometric privacy law taking effect this month, extending consent and data protection requirements to biometric identifiers under the Colorado Privacy Act.
Source: Claim Depot
–
By Ji-seo Kim
