Innovative technology is transforming the workplace faster than ever before, and the use of biometrics in employment is rapidly gaining traction. Biometric data, like fingerprints and facial recognition, improves fraud prevention, access control, and security, making it a win-win for employees and employers.

However, more states are adopting the Biometrics Information Privacy Act (BIPA) to regulate the use, handling, and collection of employee data.

To avoid legal repercussions while staying competitive, companies must strike the perfect balance between data collection and employees’ biometric data privacy rights.

Keep reading to learn actionable tips to do just that.

Biometric Information Privacy Laws

To date, there are no comprehensive biometric data laws in place at the federal level. However, Texas, Illinois, California, New York, and Washington have all implemented state-level BIPA compliance staffing laws to protect employee data privacy.

BIPA requires entities that collect, use, and store biometric data to adhere to specific staffing biometric consent requirements and offer a private right of action for recovering statutory damages if they fail to do so.

The law states that biometrics are “biologically unique to the individual; therefore, once compromised, the individual has no recourse, is at heightened risk for identity theft, and is likely to withdraw from biometric-facilitated transactions.”

To legally use biometric data, staffing firms and employers in states with BIPA compliance laws must obtain written consent from employees and disclose the purpose of using biometric data at work.

Risks of Non-Compliance

Staffing firms that fail to comply with BIPA rules can face significant legal violations, hefty fines, and even lawsuits. This not only impacts their reputation but also erodes client and candidate trust.

Some of the most notable cases of the 100 recent BIPA class-action lawsuits filed against employers by employees are:

  • Rosenbach v. Six Flags Entertainment Corp
  • Patel v. Facebook
  • W. Bend Mut. Ins. Co. v. Krishna Schaumburg Tan, Inc.

Staffing firms must achieve and maintain BIPA compliance to avoid such lawsuits, maintain a positive reputation, and uphold employee biometric data security. Advanced biometric time tracking tools, like Timerack, can help.

Timerack’s Biometric Data Practices

Timerack takes BIPA compliance and employee data privacy very seriously. That’s why we have stringent policies in place regarding biometric timekeeping and data collection, storage, and use. This protects not only our clients but also their employees.

Some of the preventative measures we take to safeguard employees’ sensitive biometric data include:

  • Obtaining written consent from each client’s employee
  • Disclosing to employees in writing that Timerack, our vendors, and/or clients are collecting, capturing, or otherwise obtaining the employee’s biometric data
  • Maintaining a high standard of care to store, transmit, and protect from disclosure all biometric data collected
  • Using state-of-the-art encryption to protect data from cyber criminals
  • Providing access controls to manage who has access to biometric data
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Top Benefits of Biometrics for Staffing

Some of the top benefits of using Timerack’s intelligent biometric time clock for staffing firms include:

  • Improved workforce management through accurate employee time tracking
  • Reducing time theft and buddy punching
  • Streamlining payroll and invoicing with automated data flows
  • Eliminating costly manual data entry errors and data silos
  • Effortlessly tracking attendance for employees across distributed locations, including remote and hybrid teams
  • Improved accuracy and efficiency

Tips for Balancing Innovation and Employee Biometric Data Privacy

Staffing firms must develop and implement new policies and procedures to embrace innovation while protecting employees’ vulnerable data. While this may be challenging, the following tips can help:

  • Ensure that all employees are fully informed about what biometric data is, their privacy rights, how the data is collected, its purpose, and how it will be stored and used
  • Use robust encryption to protect data from breaches and unauthorized access
  • Develop comprehensive guidelines on what data will be retained and ensure it is not kept longer than necessary for its intended use
  • Stay up-to-date on BIPA compliance laws at the federal and state levels

Lastly, staffing firms must partner with a reputable and reliable time and attendance technology provider, like Timerack, to ensure the safety and security of all biometric data.

Bridging the Gap Between Innovation and Employee Protection

As more states continue to adopt BIPA compliance laws, biometrics staffing agencies must prioritize innovation and employee data protection. Leveraging cutting-edge time management tools allows staffing firms to optimize productivity and accuracy while keeping employees safe.

Timerack is committed to enabling the lawful and ethical use of biometric data and helping our clients maintain compliance.

Want to learn more? Contact us today for a demo.