On January 25, 2019, the Illinois Supreme Court issued a highly anticipated decision, Rosenbach v. Six Flags Entertainment Corporate et al., extending the reach of the Illinois Biometric Information Privacy Act (BIPA). BIPA is an Illinois privacy law that regulates the collection, use, and retention of biometric data such as fingerprints, face, and eye scans by imposing procedural requirements on corporations that collect the data. Though not an employment case, the decision impacts employers using biometric time-keeping systems in Illinois.
On June 14, franchisors received good news when the US District Court in the Eastern District of Illinois ruled that Jimmy John’s Franchise, LLC is not a joint employer of its franchisees’ employees.
In 2014, former employees of various Jimmy John’s franchisees brought a collective action against their former franchisee employers and against Jimmy John’s Franchise, LLC. The former employees alleged they were misclassified as exempt under the FLSA and consequently denied overtime pay. They also claimed that Jimmy John’s, as an alleged joint employer, was jointly liable for their damages.
On summary judgment, the Court applied a modified version of the Seventh Circuit’s Moldenhauer test to determine joint employment. It stated that all of the factors reviewed boiled down to one essential question: whether
Jimmy John’s exercised control and authority over franchise employees in a manner that caused the FLSA violation (at least in part). And, the Court determined that the evidence demonstrated that the franchise owners determine how to classify and compensate franchise employees — not Jimmy John’s. As such, Jimmy John’s did not exercise control over the alleged FLSA violation and was not a joint employer.
Click here to read more on the decision and its impact on franchisors.
Is your HR team struggling with how to manage a diverse workforce in the #metoo era? Join us and representatives from the EEOC and NLRB for a complimentary seminar on April 12th to discuss the agencies views on these topics and more, including:
- The Evolving Workplace and Where We Stand With the New Administration
- The EEOC’s perspective: Sexual Harassment, Mandated Training, Civility Rules and Confidentiality (featuring Greg Gochanour, EEOC Supervising Trial Attorney
- The NLRB’s Perspective: The New Standard for Evaluating Work Rules and What it Means for Employee Handbooks, Confidentiality and Civility in the Workplace (featuring Paul Hitterman, NLRB Regional Attorney, Region 13)
- Ethics CLE: Rule 37 (ESI), Spoliation and Litigation Holds
When: 8:30 AM CST – 11AM CST (The seminar kicks off with registration and a networking breakfast, and the program begins at 9AM)
Where: Hyatt Regency Deerfield (1750 Lake Cook Rd., Deerfield, IL 60015)
Attention employers using biometric identification technology, such as retina scans, fingerprint identification and facial recognition technology:
A number of corporations in Illinois, including internet and video game companies, food product manufacturers, gas stations, and restaurant chains, have been sued in the past few months for alleged BIPA violations.