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McDonald’s Employees BIPA Coverage Complaint Overview:
- Who: Homeland Insurance Company of New York filed a complaint for declaratory judgement against McDonald’s.
- Why: Homeland says it has no duty to defend or indemnify McDonald’s BIPA lawsuits because they do not trigger coverage under the insuring agreements of the relevant Homeland liability policies.
- Where: The complaint for a declaratory judgment was filed in Illinois federal court.
Homeland Insurance Company has no duty to defend or indemnify McDonald’s in Illinois Biometric Information Privacy Act (BIPA) lawsuits because they do not trigger coverage under its insuring agreements and liability policies, according to court documents filed by the insurer on Monday.
The Homeland Insurance is seeking a declaration from the court that says it is not required to defend the company and six of its franchisees in a pair of class action lawsuits served by McDonald’s employees accusing the fast food chain of violating the Illinois privacy law, BIPA.
Insurance Co Says It Warned That eSmart Clock-in Would Violate Rights of McDonald’s Employees
The plaintiffs in both lawsuits allege McDonald’s illegally collected, stored and used employees’ biometric identifiers, i.e., fingerprints, without first obtaining informed written consent as part of the restaurant’s timekeeping system.
However, because McDonald’s allegedly notified franchisees of exposure to BIPA liability.
In regards to the use of the timekeeping system, McDonald’s and its franchisees knew as early as October 2017 they would violate the rights of employees and did not consult with counsel to ensure BIPA compliance, according to the complaint.
The insurance company is requesting a declaration that it has no duty to defend or indemnify McDonald’s and its franchisees in the underlying actions.
McDonald’s is facing another class action lawsuit claiming the chain took illegal recordings of Illinois residents’ voices as they made orders through the drive-thru.
Wendy’s employees recently reached a $5.85 million settlement with the owner of several Illinois restaurants over alleged BIPA violations.
Are you an Illinois McDonald’s employee who had your biometric identifiers without your consent? Let us know in the comments!
The insurance company is represented by Greta A. Matzen of Intact U.S. Coverage Litigation Group, Intact Insurance Specialty Solutions, and Michael J. Duffy of Wilson Elser Moskowitz Edelman & Dicker, LLP.
The McDonald’s BIPA Coverage Complaint is Homeland Insurance Company of New York. v. McDonald’s Corp., et. al., Case No. 1:21-cv-05076, in the U.S. District Court for the Northern District of Illinois, Eastern Division.
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3 thoughts onMcDonald’s Knew Clock-in System Would ‘Violate the Rights of Employees,’ Says Insurer in Bid To Escape BIPA Suits
I was employed with McDonald’s from 2015-2018 n I did use the fingerprint system, when it worked.. I live in ny state
I’m from Illinois worked at the one in Georgetown IL and it was finger print to clock on I worked there in 2018 and want put inn
Add me to