Illinois heads off accrual precedent for biometric data privacy damages

Illinois’ Biometric Information Privacy Act (BIPA) has been officially amended, with Governor J.B. Pritzker signing the changes into law on Friday. The amendments included in Senate Bill 2979 include the acceptance of digital signatures for consent, and make each single violation count only ones, even if it repeated.

The change in accrual means that businesses do not face separate damages for each day a particular employee clocked into work on a biometric time and attendance device, for example.

State lawmakers said the change will provide certainty for Illinois’ businesses, while still protecting their biometric data, reports The Center Square.

“But it adds much needed clarity that helps small businesses operate in a more predictable regulatory environment,” said State Rep. Abdelnasser Rashid when the amendment was approved in the legislature. “I know that many small business owners will be relieved to see this measure pass.”

The accrual issue was central to several court battles over BIPA, notably including a class action against White Castle that could have cost the company $17 billion in damages, if each biometric scan represented a new violation.

Several similar attempts to amend BIPA have come up short.

SB 2979 was a direct response to the White Castle case, Baker Donelson Of Counsel David J. Oberly told Biometric Update in an email when it was approved by lawmakers.

Where’s the beef?

The settlement between White Castle and close to 9,000 current and former employees is complete, with a federal judge signing off on the agreement, Law360 reports. The burger chain will pay $9.39 million in damages, including $3.5 million for plaintiffs’ attorneys.

None of the class members chose to opt out of the settlement, which the judge said indicates the fairness of the settlement.

When Illinois’ Supreme Court ruled that the language of BIPA forced it to side with plaintiffs on accrual last year, it invited legislators to fix the mess they had created.

Article Topics

biometric data  |  Biometric Information Privacy Act (BIPA)  |  data privacy  |  data protection  |  lawsuits