Thomas v. Cornerstone Services, LLC

2026 IL App (3d) 240568
Appellate Court of Illinois·Decided April 28, 2026·No. 3-24-0568·Published

Opinion

2026 IL App (3d) 240568

Opinion filed April 28, 2026

IN THE

APPELLATE COURT OF ILLINOIS THIRD DISTRICT

2026

TIARA THOMAS, ) Appeal from the Circuit Court ) of the 12th Judicial Circuit, Plaintiff-Appellee, ) Will County, Illinois, )

v. ) Appeal No. 3-24-0568 ) Circuit No. 23-LA-157 )

CORNERSTONE SERVICES, INC., ) Honorable ) Roger D. Rickmon, Defendant-Appellant. ) Judge, Presiding.

JUSTICE BERTANI delivered the judgment of the court, with opinion.

Justices Brennan and Davenport concurred in the judgment and opinion.

OPINION

¶1 This interlocutory appeal seeks clarification on the scope of an exemption within the Biometric Information Privacy Act (Act). 740 ILCS 14/1 et seq. (West 2024). The pertinent statutory provision, referred to by the parties as the “government contractor exemption,” provides that “[n]othing in this Act shall be construed to apply to a contractor, subcontractor, or agent of a State agency or local unit of government when working for that State agency or local unit of government.” Id. § 25(e).

¶2 The dispute concerns the exemption’s qualifying phrase “when working for” to which the parties offer competing interpretations. Defendant, Cornerstone Services, Inc. (Cornerstone),

argues the phrase is unambiguous, merely temporal, and exempts a government contractor from liability under the Act during the time that it performs services pursuant to a government contract. Under Cornerstone’s interpretation, section 25(e) confers categorical exemption to contractors in possession of an active government contract no matter how large or small. The exemption applies, according to Cornerstone’s view, irrespective of whether purported violations occurred outside the scope of a government contract. Conversely, plaintiff, Tiara Thomas, asserts the phrase is ambiguous and the exemption only applies when the contracted entity is working as a government contractor.

¶3 In October 2023, Thomas filed an amended class action complaint against Cornerstone as her former employer alleging its timekeeping system violated the Act. In denying Cornerstone’s motion to dismiss the amended complaint, the circuit court adopted Thomas’s position that the exemption does not apply to a contractor’s violations occurring outside of its government contract and granted Cornerstone’s subsequent motion to certify two questions for review pursuant to Illinois Supreme Court Rule 308 (eff. Oct. 1, 2019):

“Does the exemption under Section 25(e) of BIPA declaring that BIPA ‘shall not be construed to apply to a contractor, subcontractor, or agent of a State agency or local unit of government when working for that State agency or local unit of government’ apply to exempt from BIPA only those contractors or subcontractors who work exclusively for state agencies or local units of government,”

and “If the answer to the foregoing is ‘no,’ what is the meaning of the phrase ‘when working for the State agency or local unit of government’ as used in Section 25(e)?”

¶4 Based on its plain language, we conclude that the government contractor exemption applies only to exempt a contractor from liability when acting within the scope of its government contract. We answer the first certified question in the negative and hold that the Act does not require an exclusive contractual relationship with a state agency or local unit of government for the exemption to apply. We answer the second certified question by concluding that the unambiguous construction of the phrase “when working for” is not merely temporal; rather, it also qualifies the conduct exempted such that a government contractor is immunized from liability under the Act only when its violation occurred when acting within the scope of its governmental contractual relationship.

¶5 I. BACKGROUND

¶6 Cornerstone is a corporation that provides services and support to individuals in Illinois with intellectual and developmental disabilities. It has a contractual relationship with the State of Illinois and receives funding from the Department of Human Services (DHS), a state agency. Thomas was employed at Cornerstone from 2020 to 2022. During her employment, Cornerstone allegedly tracked Thomas’s time on the job through the use of a biometric time tracking system, i.e., a finger-scanning time clock.

¶7 Thomas, a putative class representative, filed a class action complaint against Cornerstone for its alleged violations of the Act in its unauthorized disclosure of employee biometric identifiers. The amended complaint included the following factual allegations. Cornerstone has used and stored its employees’ fingerprints for time tracking purposes since around 2008 and had its employees sign a consent form related to its biometric data collection policy. The form did not notify Cornerstone employees, nor did Cornerstone otherwise receive employee consent, that their biometric information would be disclosed to Automatic Data Processing (ADP), a third-party

vendor Cornerstone used to process payroll. Cornerstone disclosed Thomas’s and the putative class’s fingerprint biometric identifiers to ADP in violation of section 15(d) of the Act.

¶8 Cornerstone filed a combined motion to dismiss pursuant to section 2-619.1 of the Code of Civil Procedure seeking dismissal, in part, on the grounds that Cornerstone’s exempted status as a government contractor barred Thomas’s claim. 735 ILCS 5/2-619.1, 2-619(a)(9) (West 2024). Cornerstone pleaded that it received funds from the DHS for providing housing and support services to qualified applicants with disabilities, including more than $23 million annually during the years in which Thomas was employed. Cornerstone attached a declaration of its chief executive officer, Ben Storz, to its motion averring that payments from the DHS constituted 60% to 73% of its revenue during those years. Accordingly, Cornerstone argued it was exempt from liability under the Act because it provided services pursuant to a government contract for the duration of Thomas’s employment.

¶9 Thomas responded to the motion to dismiss by seeking leave to conduct discovery pursuant to Illinois Supreme Court Rule 191(b) (eff. Jan. 4, 2013) and moved to stay briefing on the motion. She argued the applicability of the exemption depended upon whether Cornerstone collected and handled employee biometrics while providing services pursuant to its government contract and that publicly available information made it reasonable to infer that Cornerstone was not a state contractor at all relevant times. In opposing the motion to stay, Cornerstone argued discovery was unnecessary to respond to its claim of exemption and confirmed it provides services and receives revenue outside of its state contracts. Thomas filed a motion to reconsider the court’s February 13, 2024, denial of her motion for discovery and to stay.

¶ 10 On April 24, 2024, the circuit court conducted a hearing on the parties’ outstanding motions and denied Cornerstone’s motion to dismiss. It questioned whether the exemption applies for work

done outside of the government contractor role, stating: “[y]ou can have two separate roles I suppose you’d say. [Thomas’s] whole argument is some of your work clearly is for the state” and “[s]ome of it might not be, so now you have a mixed situation.” The court contemporaneously denied Thomas’s motion to reconsider the denial of her Rule 191(b) motion, ordered Cornerstone to answer the complaint, and directed the parties to proceed with discovery.

Free access — add to your briefcase to read the full text and ask questions with AI

Thomas v. Cornerstone Services, LLC, 2026 IL App (3d) 240568 (Ill. Ct. App. 2026).

2026 IL App (3d) 240568 (Thomas v. Cornerstone Services, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Jones v. Help At Home, LLC
Appellate Court of Illinois, 2026