PeopleNet Must Face Class Action Alleging Violations of Biometric Data Collection Laws

By Anna Bradley-Smith | November 2, 2021

Category: Legal News

PeopleNet BIPA Class Action Lawsuit Overview:

Who: A judge has denied PeopleNet’s request to dismiss a class action lawsuit accusing the company of violating the Illinois Biometric Information Privacy Act.
Why: Sharena King alleges that her data was illegally collected and stored by PeopleNet, as the company never asked for informed written consent or published a data retention policy.
Where: The class action claims are pending in federal and state courts of Illinois.

PeopleNet must face a class action lawsuit alleging that it uses its timekeeping machines to unlawfully collect and store consumers’ biometric data after an Illinois federal judge rejected the tech company’s bid for dismissal.

US District Judge Manish S. Shah ruled that lead plaintiff Sharena King has “stated a claim” in her class action lawsuit.

As Judge Shah denied the technology company’s motion for dismissal, he granted King’s request to remove two of her three claims to state court, agreeing that the claims — which accuse PeopleNet of failing to publish a data retention policy and profiting from consumer data — fail to meet the “concrete and particularized” injury requirements of federal court.

PeopleNet Class Action Claims Unlawfully Collected, Stored Face Scans

King says her claims are centered on the company’s lack of a biometric retention policy, a violation of the Illinois Biometric Information Privacy Act (BIPA).

BIPA requires companies to develop a written policy, made available to the public, establishing a retention schedule and guidelines for permanently destroying biometric identifiers and biometric information, Shah points out in his ruling.

“The bottom line is this: PeopleNet was a private entity that allegedly obtained King’s biometric information,” Shah wrote. “Defendant didn’t tell King about the collection, spell out why it was collecting the information or for how long, and didn’t get a written release before-hand.”

Shah added that PeopleNet’s duty to publish a biometric retention policy was owed to the public, not just to employees of the company’s clients.

On top of backing King’s arguments to two move the two claims to state court, Shah supported leaving a third claim in federal court. In the third claim, King argues that the Illinois federal court has specific jurisdiction over PeopleNet as it chose to do business there for a prolonged period of time.

Judge Shah sided with King, writing: “Defendant sought out the Illinois biometric timekeeping market. It did business with companies here, shipped in devices, and handled a large quantity of biometric data from Illinois over a period of years.”

King’s class action describes how she was required to clock in and out of her job at Paramount in Chicago using PeopleNet face scanners or time clocks, but was never told that her biometrics were being collected and stored. She says she didn’t get informed written consent or any written disclosures describing why the company was using her biometrics or how long the use would last.

“In addition to King, thousands of other people in Illinois were scanned by PeopleNet’s systems, and defendant collected, stored, transmitted, and disseminated their biometric data,” the class action alleges.

Does your work require you to use PeopleNet timekeeping technology? Let us know your experience in the comments below!

The plaintiff is represented by Timothy P. Kingsbury and Steven R. Beckham of McGuire Law PC.

The PeopleNet BIPA Class Action Lawsuit is King v. PeopleNet Corporation, Case No. 1:21-cv-02774, in the U.S. District Court for the Northern District of Illinois.