Thomasville, N.C. — North Carolina-based Old Dominion Freight Line has recently settled a lawsuit concerning allegations of mismanagement of biometric data under Illinois’ stringent privacy laws. This case is part of a growing trend of legal challenges over biometric information privacy involving various transportation companies.
The lawsuit, initiated against Old Dominion by a group of current and former employees, stemmed from the company’s use of biometric data through time clocks that required employees to scan their fingerprints. This practice led to the capture and storage of biometric identifiers, a process regulated under the Illinois Biometric Information Privacy Act (BIPA) established in 2008.
BIPA sets forth robust requirements for companies handling biometric data, including informing individuals in writing before their biometric information is collected, clarifying the purpose and duration for which the data will be held, obtaining written consent, and maintaining transparent data retention and destruction policies. According to court documents, the plaintiffs in the Old Dominion case argued that the company failed to comply with these aspects, particularly concerning public retention schedules and prior written consent.
The legal complaint against Old Dominion, filed in April 2023, encompassed four allegations of BIPA violations. Although the court dismissed the claim regarding public data retention and destruction policy in July 2024, it allowed the case to proceed on the issues of written notice and consent.
As of January 3, the parties filed a joint notice of settlement in an Illinois federal court, though specifics of the settlement have not yet been disclosed. A motion for preliminary approval of the settlement is anticipated soon, which will likely reveal the terms and conditions agreed upon by the parties.
This settlement is part of a broader legal landscape where transportation and logistics companies are increasingly scrutinized for their use of biometric data. Notably, a significant legal precedent was set in a similar case involving BNSF Railway Company, which reached a $75 million settlement with truck drivers in June 2024 after a federal court reduced a jury award from over $200 million. A jury had found BNSF in violation of BIPA before the award was vacated by a judge.
Similar suits have ripple effects across the industry. For instance, the truck driver who initiated the action against BNSF also pursued a case against CSX Intermodal Terminals, which was transferred to an Illinois state court in November 2020 for settlement discussion. Another lawsuit filed by truckers against Union Pacific Railroad is currently ongoing, with plaintiffs seeking class-action status as of January 2020.
These cases underscore the complexity and potential consequences of managing biometric data, highlighting the need for stringent compliance with privacy laws designed to protect personal information.
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