Staffing and payroll provider DX Enterprises Inc. has reached a $1.52 million settlement to resolve claims that it collected workers’ fingerprints without written consent, which were used to track employee clock-ins and clock-outs. The settlement, which was granted final approval by a U.S. District Judge, resolves a class action lawsuit involving 586 Illinois workers.
The lawsuit, which began in state court, alleged that DX Enterprises violated the Illinois Biometric Information Privacy Act (BIPA) by requiring employees to use their fingerprints for timekeeping purposes without first obtaining their written consent. As part of the settlement, each worker will receive nearly $2,500, with an additional distribution of $87,179 allocated to 86 workers who were rehired by the company between February 27, 2018, and January 7, 2025.
Lead plaintiff Heather McClaine, who initiated the lawsuit in March 2023, was awarded an additional $15,000 for her role as the class representative. The settlement also includes attorney fees of $533,596 to class counsel Max P. Barack of the Garfinkel Group LLC.
The court emphasized that the settlement was the result of approximately six months of negotiations and was deemed fair, adequate, and reasonable given the complexity of the case and the risks associated with further litigation. U.S. District Judge David W. Dugan noted that the settlement was in the best interests of the affected workers.
“The settlement is in the best interests of the settlement class considering the complexity of the litigation, the significant risks of continued litigation, and the likely duration of further litigation,” said Judge Dugan in his ruling.
McClaine, who worked at a Toyota plant in Lawrenceville, Illinois, alleged that DX Enterprises violated BIPA by not providing a written policy on the collection, retention, and destruction of biometric data, as required by the law. Toyota was not involved in the litigation.
The case is McClaine et al. v. DX Enterprises Inc., case number 3:23-cv-01168, in the U.S. District Court for the Southern District of Illinois.
