Railserve, Marmon Holdings Hit with Privacy Class Action in Illinois Over Employee Fingerprint Scanning

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A proposed class action claims Railserve, Inc. has illegally collected, stored and shared Illinois employees’ fingerprints without obtaining prior consent or providing certain statutory disclosures.

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The 18-page complaint accuses the in-plant railroad service provider, parent company Marmon Holdings, Inc. and co-defendant Marmon Railroad Services LLC of violating Illinois’ Biometric Information Privacy Act (BIPA), a state law that governs how private entities can handle residents’ sensitive biometric data.

According to the lawsuit, Railserve requires employees to clock in and out of work at its Illinois facilities using a biometric timekeeping system that scans their fingerprints. The case alleges that Railserve, Marmon Holdings and Marmon Railroad used this technology all while failing to comply with the following BIPA requirements:

• Inform workers in writing that their biometric information would be collected, stored and used;
• Inform workers in writing of the specific purpose and the length of time for which their fingerprints would be collected, stored and used;
• Secure a written release from workers authorizing the collection of their biometric information; and
• Publish a publicly available retention schedule and guidelines for permanent deletion of biometric information.

The suit also claims that the defendants have unlawfully disclosed employees’ fingerprints to third parties, including vendors for timekeeping, data storage and payroll services, without permission.

“Compliance with BIPA is straightforward and may be accomplished through a single, signed sheet of paper,” the filing contends. “BIPA's requirements bestow a right to privacy in biometrics and a right to make an informed decision when electing whether to provide or withhold biometrics.”

According to the complaint, the defendants’ alleged BIPA violations could expose current and former employees to “grave privacy risks” should malicious actors steal their biometric information.

“The permanent and irreplaceable nature of one’s biometrics makes the illegal collection of the same a significant public problem with far-reaching consequences; including irreversible identity theft,” the case stresses.

The lawsuit looks to represent anyone in Illinois who, since May 8, 2019, had their biometrics possessed, collected, stored, used or disseminated by or on behalf of Railserve, Marmon Holdings and Marmon Railroad Services or its technology when the defendants had not first obtained written consent or while they did not maintain a compliant, publicly available written policy related to retention and destruction of such biometrics.

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