Peatry v. Bimbo Bakeries USA, Inc.

CourtDistrict Court, N.D. Illinois
DecidedFebruary 26, 2020
Docket1:19-cv-02942
StatusUnknown

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

Bluebook
Peatry v. Bimbo Bakeries USA, Inc., (N.D. Ill. 2020).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

LISA PEATRY, individually, and on behalf of ) all others similarly situated, ) ) Plaintiff, ) ) No. 19 C 2942 v. ) ) Judge Sara L. Ellis BIMBO BAKERIES USA, INC., ) ) Defendant. )

OPINION AND ORDER Plaintiff Lisa Peatry, an employee of Defendant Bimbo Bakeries USA, Inc. (“Bimbo”), filed this putative class action lawsuit alleging that Bimbo violated the Illinois Biometric Information Privacy Act (“BIPA”), 740 Ill. Comp. Stat. 14/1 et seq., through its collection, storage, and use of Peatry’s biometric information. Specifically, Peatry brings claims for (1) Bimbo’s failure to institute, maintain, and adhere to a publicly available retention schedule in violation of BIPA § 15(a); (2) Bimbo’s failure to obtain informed, written consent before obtaining biometric information in violation of BIPA § 15(b); and (3) Bimbo’s disclosure of biometric information before obtaining consent in violation of BIPA § 15(d). Bimbo moves to dismiss the complaint, arguing that § 301 of the Labor Management Relations Act of 1947 (the “LMRA”) and the National Labor Relations Act of 1935 (the “NLRA”) preempt Peatry’s claims.1 Alternatively, Bimbo argues that Peatry has failed to state a BIPA claim and that the Illinois Workers Compensation Act (the “IWCA”), 820 Ill. Comp. Stat. 305/1 et seq., bars her

1 Bimbo filed its motion under Federal Rule of Civil Procedure 12(b)(3) for improper venue. Subsequently, the Seventh Circuit clarified that the Court should consider these preemption arguments under Rule 12(b)(1) for lack of subject matter jurisdiction or as a motion for judgment on the pleadings under Rule 12(c). Miller v. Sw. Airlines Co., 926 F.3d 898, 901 (7th Cir. 2019). Because Bimbo has not yet filed an answer, the Court considers Bimbo’s preemption arguments under Rule 12(b)(1). claims. The Court finds that § 301 of the LMRA preempts Peatry’s claims arising after May 8, 2018, when a collective bargaining agreement governing Peatry’s employment went into effect. But Peatry may proceed on her pre-May 8, 2018 claims, which neither the NLRA or IWCA preempt and sufficiently allege BIPA violations. BACKGROUND2

Bimbo, a bakery product manufacturing company, uses a biometric timekeeping device, provided by a third party, to track employees’ hours. Upon hiring an employee, Bimbo scans their fingerprints and enrolls them in an employee database. Employees must then use their fingerprints to clock in and clock out. Bimbo does not inform its employees that it discloses the biometric information it collects to its third-party vendor and other third parties that host the database. Bimbo also does not obtain written releases before collecting the fingerprints or provide employees with a written, publicly available policy identifying a retention schedule and guidelines for permanently destroying employees’ fingerprints. Peatry worked for Bimbo as a machine operator at Bimbo’s facility at 1540 S. 54th

Avenue in Cicero, Illinois. Aryzta owned this facility until Bimbo acquired it on February 9, 2018. Bimbo entered into a collective bargaining agreement (“CBA”) with the Chemical and Production Workers Union Local No. 30, AFL-CIO (the “Union”), which became effective May 8, 2018. Among other things, the CBA provides Bimbo with certain exclusive management rights, including “to make and enforce reasonable plant rules of conduct and regulations not inconsistent with the provisions” of the CBA, “to introduce new and improved methods, materials, equipment or facilities,” and “to change or eliminate existing methods, materials,

2 The facts in the background section are taken from Peatry’s complaint and are presumed true for the purpose of resolving the motion to dismiss pursuant to Rule 12(b)(6). See Virnich v. Vorwald, 664 F.3d 206, 212 (7th Cir. 2011). The Court also considers the additional materials submitted by Bimbo when considering the motion to dismiss pursuant to Rule 12(b)(1). See Apex Digital, Inc. v. Sears, Roebuck & Co., 572 F.3d 440, 443–44 (7th Cir. 2009). equipment, or facilities.” Doc. 18-1 at 8. The CBA also sets forth negotiated wage tables. Finally, as relevant here, the CBA includes a grievance procedure, requiring employees to pursue “dispute[s] regarding the meaning and application of the terms of” the CBA in accordance with that procedure. Id. at 12.

During her employment at the facility between September 2016 and February 2019, Peatry scanned her fingerprints every time she clocked in and out of work as part of the facility’s timekeeping method.3 Bimbo never informed her of the purposes or length of time for which Bimbo collected, stored, used, and disseminated her biometric data. Bimbo also never informed her of a biometric data retention policy or whether Bimbo would at some point permanently delete her biometric data. Peatry never received or signed a written release authorizing the collection, storage, use, and dissemination of her biometric data. She would not have provided her biometric data if she knew that Bimbo would retain it for an indefinite period of time without her consent. She also would not have agreed to the compensation she received had she known that Bimbo would retain her biometric data indefinitely.

LEGAL STANDARD A motion to dismiss under Rule 12(b)(1) challenges the Court’s subject matter jurisdiction. Fed. R. Civ. P. 12(b)(1). The party asserting jurisdiction has the burden of proof. United Phosphorus, Ltd. v. Angus Chem. Co., 322 F.3d 942, 946 (7th Cir. 2003), overruled on other grounds by Minn-Chem, Inc. v. Agrium, Inc., 683 F.3d 845 (7th Cir. 2012). The standard of review for a Rule 12(b)(1) motion to dismiss depends on the purpose of the motion. Apex Digital, 572 F.3d at 443–44. If a defendant challenges the sufficiency of the allegations regarding subject matter jurisdiction (a facial challenge), the Court must accept all well-pleaded

3 Peatry’s complaint alleges that her employment ended in February 2019, while Bimbo’s representative indicates that his review of the records reflects an end date of March 12, 2019. The end date of her employment does not affect the pending motion to dismiss. factual allegations as true and draw all reasonable inferences in the plaintiff’s favor. See id.; United Phosphorus, 322 F.3d at 946. If, however, the defendant denies or controverts the truth of the jurisdictional allegations (a factual challenge), the Court may look beyond the pleadings and view any competent proof submitted by the parties to determine if the plaintiff has

established jurisdiction by a preponderance of the evidence. See Apex Digital, 572 F.3d at 443– 44; Meridian Sec. Ins. Co. v. Sadowski, 441 F.3d 536, 543 (7th Cir. 2006). A motion to dismiss under Rule 12(b)(6) challenges the sufficiency of the complaint, not its merits. Fed. R. Civ. P. 12(b)(6); Gibson v. City of Chicago, 910 F.2d 1510, 1520 (7th Cir. 1990). In considering a Rule 12(b)(6) motion to dismiss, the Court accepts as true all well- pleaded facts in the plaintiff’s complaint and draws all reasonable inferences from those facts in the plaintiff’s favor. AnchorBank, FSB v. Hofer, 649 F.3d 610, 614 (7th Cir. 2011).

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Peatry v. Bimbo Bakeries USA, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/peatry-v-bimbo-bakeries-usa-inc-ilnd-2020.