Johns v. Paycor, Inc.

CourtDistrict Court, S.D. Illinois
DecidedMarch 28, 2025
Docket3:20-cv-00264
StatusUnknown

This text of Johns v. Paycor, Inc. (Johns v. Paycor, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johns v. Paycor, Inc., (S.D. Ill. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR SOUTHERN DISTRICT OF ILLINOIS

KELLIN JOHNS, individually and on ) behalf of all others similarly situated, ) and JUAN BARRON, ) ) Plaintiffs, ) ) Case No. 3:20-cv-264-DWD vs. ) ) PAYCOR, INC., ) ) Defendant. )

MEMORANDUM & ORDER DUGAN, District Judge: Before the Court are Defendant’s Amended Motion to Dismiss under Federal Rule of Civil Procedure 12(b)(6) (Docs. 106 & 107), Plaintiffs’ Renewed Motion for Class Certification under Federal Rule of Civil Procedure 23 (Doc. 103), and Defendant’s Motion to Strike New Arguments and Evidence from Plaintiffs’ Reply in Support of Class Certification (Doc. 151; Sealed Doc. 152). The two former Motions are contested. (Docs. 116, 125, 148). The latter Motion is uncontested. For the reasons explained below, the Amended Motion to Dismiss is DENIED, the Renewed Motion for Class Certification is GRANTED in part and DENIED in part, and the Motion to Strike is DENIED as moot. I. BACKGROUND On October 29, 2020, Plaintiffs filed a First Amended Class Action Complaint, alleging violations of the Biometric Information Privacy Act (“BIPA”), 740 ILCS 14/1 et seq. (Doc. 40). Plaintiffs were employees at various fitness centers, owned by Club Fitness, Inc., in the St. Louis Metro east region. (Doc. 40, pg. 12). Defendant designs and manufactures “Biometric Time Clocks,” which were utilized by Club Fitness, Inc., “that require scans of users’ biometric data in order for those users to clock in and out of work.”

(Doc. 40, pgs. 1-2, 12). Plaintiffs were allegedly required to scan their fingerprints, but not their hand geometry, “on Paycor’s Biometric Time Clock at Club Fitness so [that] they could be used as an authentication method to track their time worked.” (Doc. 40, pg. 12). Defendant allegedly “disregards Biometric Time Clock users’ statutorily protected privacy rights and unlawfully collects, captures, otherwise obtains, stores, maintains, and uses their biometric data in violation of BIPA.” (Doc. 40, pgs. 1-2, 4-5, 9-12).

Plaintiffs initiated this lawsuit alleging Defendant: (1) failed to institute, maintain, and adhere to a publicly available retention schedule under § 15(a) of BIPA (First Cause of Action); (2) failed to obtain an informed written consent and release before obtaining biometric identifiers or information under § 15(b) of BIPA (Second Cause of Action); and (3) disclosed biometric identifiers and information without consent under § 15(d) of

BIPA. (Doc. 40, pgs. 4-5, 9-12, 17-21). They seek, inter alia, class certification, declaratory relief, injunctive relief, and statutory damages. (Doc. 40, pgs. 5, 22).1 II. ANALYSIS A. Defendant’s Amended Motion to Dismiss under Rule 12(b)(6)

Defendant’s Amended Motion to Dismiss is filed under Rule 12(b)(6), which allows challenges to a pleading based upon the failure to state a claim for which relief may be granted. Fed. R. Civ. P. 12(b)(6); Firestone Fin. Corp. v. Meyer, 796 F.3d 822, 825 (7th

1The Court notes this case was stayed, pending the resolution of certain appeals by the Seventh Circuit and Illinois Appellate Court, between May 11, 2021, and May 8, 2024. (Docs. 65 & 99). During that time, this Court also resolved issues presented under the Colorado River Doctrine. (Docs. 82 & 99). Cir. 2015) (quoting Camasta v. Jos. A. Bank Clothiers, Inc., 761 F.3d 732, 736 (7th Cir. 2014)). To survive a Rule 12(b)(6) motion, which tests the sufficiency of the pleading but not its

merits, the plaintiff must allege enough facts for the claim to be facially plausible. Kloss v. Acuant, Inc., 462 F. Supp. 3d 873, 876 (7th Cir. 2020) (quoting McReynolds v. Merrill Lynch & Co., Inc., 694 F.3d 873, 878 (7th Cir. 2012)); Fosnight v. Jones, 41 F.4th 916, 921-22 (7th Cir. 2022) (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007)). This means plaintiff pled enough facts for the Court to draw reasonable inferences as to liability. Fosnight, 41 F.4th at 922 (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). A pleading need not allege

“detailed factual allegations,” but it must lift the claim above the speculative level. Kloss, 462 F. Supp. 3d at 876 (citing Twombly, 550 U.S. at 555). “Threadbare recitals,” supported by mere conclusions, do not suffice. Trivedi v. Wells Fargo Bank, N.A., 609 F. Supp. 3d 628, 631 (N.D. Ill. 2022) (quoting Iqbal, 556 U.S. at 678). When ruling, the Court accepts all well- pled facts as true and draws all reasonable inferences for the pleader. Id. (quoting Tamayo

v. Blagojevich, 526 F.3d 1074, 1081 (7th Cir. 2008)); accord Kloss, 462 F. Supp. 3d at 874-75. In its Amended Motion to Dismiss, Defendant initially admits it sold a finger scan timeclock to its nonparty customer, Club Fitness; however, Defendant notes it did not have access to the policies or procedures governing Club Fitness’s use of that timeclock. (Docs. 106, pg. 1; 107, pgs. 7-8, 12). Defendant also argues a dismissal is warranted on

four independent grounds: (1) Plaintiffs do not adequately allege Defendant violated BIPA, as there is no allegation Defendant, as opposed to Club Fitness, actively collected, possessed, disseminated, otherwise obtained, or disclosed or disseminated biometric identifiers or information; (2) Plaintiffs do not adequately allege negligent, reckless, or intentional misconduct by Defendant to support damages; (3) Plaintiffs already recovered for their BIPA claims in a separate class action lawsuit against Club Fitness;

and (4) the extraterritoriality doctrine bars Plaintiffs’ claims. (Docs. 106, pg. 2; 107, pgs. 7, 9-11, 14-16, 17-24). For these reasons, Defendant argues it is not liable to Plaintiffs, let alone to the 14,000 other users of the timeclock in Illinois, under BIPA. (Docs. 106, pg. 1). Plaintiffs argue, despite the fact Defendant’s arguments are “transparently disconnected from the significant discovery already conducted,” they did more than enough to state facially plausible claims to relief under the liberal pleading standards at

play with a Rule 12(b)(6) motion to dismiss. (Doc. 116, pg. 5). For example, Plaintiffs argue they adequately allege a violation of § 15(b) because Defendant failed to receive informed consent, before obtaining biometric identifiers or information, and there is no “active step” requirement. (Doc. 116, pgs. 8-11). Even if there is such a requirement, Plaintiffs argue it is satisfied here. (Doc. 116, pg. 10). Further, as to § 15(a) and (d), Plaintiffs note

they allege Defendant possessed their biometric identifiers and information on its servers, failed to maintain a publicly available data retention policy, and failed to obtain informed consent before collecting and disclosing or disseminating biometric data. (Doc. 116, pgs. 11-14). Finally, Plaintiffs argue they did not have to plead mental state in order to support damages, they do not seek a duplicative recovery due to Defendant’s “separate

and independent BIPA violations,” and the extraterritoriality doctrine is inapplicable at this stage of the case and more broadly as a matter of fact. (Doc. 116, pgs. 16-20).

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