The Illinois Supreme Court issued an opinion on Walton v. Roosevelt University on March 23rd, 2023. This affirms the validity of a vital preemption defense for employers facing litigation under the Illinois Biometric Information Privacy Act (BIPA). Before we hear the decision of the Illinois Supreme Court, let’s understand the history of this case and what BIPA means.
Understanding BIPA
The Illinois legislature unanimously passed BIPA in 2008. This law ensures that individuals are in control of their own biometric data and prohibits private companies from collecting it unless they do the following:
- Inform the person in writing of what data is being collected or stored
- Inform the person in writing of the specific purpose and length of time in which the data will be collected, stored, and used
- Obtain the individual's written consent
Biometric data is data based on an individual’s biometric identifiers that are used to identify an individual. It can include a retina or iris scan, fingerprints, voice print, hand scan, and face geometry. BIPA has become the most litigated biometric privacy statute in the nation. It establishes standards for how businesses must handle Illinois consumers’ biometric information. The main goal of this law is to create a standard of conduct for private entities to collect or possess biometric information responsibly.
Walton V. Roosevelt University Case
This case is about an employee at Roosevelt University who brought a class action claiming the University violated various provisions of BIPA by using a biometric time-clock system. This system was used to scan his fingerprints without obtaining his informed written consent. The University then disclosed his biometric information to a third-party payroll services provider without his consent. The employee sued the University, alleging that they violated BIPA by doing the following:
- Failing to develop a written policy made available to the public, establishing a retention policy, and guidelines for destroying biometric data
- Collecting his biometric data without providing him with the requisite notice and obtaining his written consent
- Disclosing his biometric data without consent
However, an Illinois Appellate panel held that the Labor Management Relations Act (LMRA) prevents the employee from usurping the bargained-for dispute resolution requirements in the collective bargaining agreement by first suing the University directly in court. The University moved to dismiss the case because LMRA pre-empted the plaintiff’s claims.
What The Illinois Supreme Court Decided
The court affirmed the appellate court’s holding that Illinois’ BIPA is pre-empted by federal labor law for plaintiffs who are members of a bargaining unit and covered by a collective bargaining agreement. The court held that Illinois would follow Seventh Circuit precedent. In addition, the court found that the Seventh Circuit decisions governed the case and should be followed because they concern federal law and were reasonable.
Ultimately, the Illinois Supreme Court ruled that the LMRA preempts BIPA claims brought by an employee of a bargaining unit if the employer cites the collective bargaining agreement’s management rights clause in response to the claim. The court deferred to the federal case law on this issue.
What This Means For Business Owners
While you may think this case does not directly impact your business, you may have thought wrong. Unionized employees are not prohibited from seeking redress for alleged BIPA violations. They must pursue these claims through the grievance procedures in their collective bargaining agreements instead of in state or federal court. In addition, business owners should be aware of their obligations under BIPA if they collect, use, or store biometric data from employees or customers.
Business owners must consult legal counsel to understand the pre-emption issues that may arise in specific situations. Partnering with a professional employer organization (PEO) such as Group Management Services (GMS) provides you with the support you need. GMS experts help business owners comply with federal and state laws and regulations, including anti-discrimination and privacy laws. In addition, we can help employers manage their employment-related risks by providing employment practices liability insurance (EPLI) coverage. EPLI helps protect employers from the financial loss associated with claims of discrimination, harassment, retaliation, and other workplace-related claims. GMS ultimately helps business owners mitigate legal risks by providing up-to-date employment policies, procedures, and employee handbooks that are compliant with state and federal laws. Protect your business and contact us today.