Epay Systems $1.53M Biometric Privacy Settlement

Employees who used Epay Systems Inc.’s biometric timekeeping system to clock in and out of work in Illinois between May 17, 2019, and May 17, 2024, may qualify to claim a at least $1,000 from a class action settlement.

Epay Systems Inc. agreed to pay $1.53 million to resolve a class action lawsuit alleging it violated the Illinois Biometric Information Privacy Act by collecting, using or disclosing employees’ biometric data without proper consent or policy.

Who are the class members?

Class members must meet the following criteria:

• They used Epay’s biometric timekeeping system to clock in and out of work during the relevant period.
• Epay Systems Inc. allegedly captured, obtained, used or disclosed their biometric identifiers or information in Illinois.
• The alleged activity occurred between May 17, 2019, and May 17, 2024.

Individuals who did not receive a notice but believe they qualify can email info@EPAYBIPAsettlement.com. The email should include:

• Full name
• Current mailing address
• Address used when utilizing the Epay system
• Dates of employment and use of the Epay system
• Employer name and address during use of the system

The settlement administrator will review the information and notify them of their eligibility status.

How much can class members receive?

• Initial distribution: Each eligible class member who submits a valid claim form is expected to receive an estimated payment greater than $1,000. This estimate is based on the total settlement fund and the number of class members, but the final amount may vary depending on several factors.
• Subsequent distribution: If money remains after the initial checks expire, and the amount is at least $10 per person, the settlement administrator will make a second pro rata payment to those who cashed their initial check.
• Cy pres distribution: If less than $10 per person remains, or if subsequent checks go uncashed, the settlement administrator will donate the remainder to Prairie State Legal Aid, subject to court approval.

The amount of the settlement fund is based on Epay's records, which indicate the settlement class consists of 925 settlement class members. If the settlement class contains more than 925 settlement class members, Epay will increase the settlement fund by $1,650 for each additional settlement class member. 

How to claim a class action rebate

Class members can submit the online claim form or download, print, complete and mail the PDF claim form (beginning on Page 41 of the settlement agreement) to the settlement administrator. They must submitted the claim form online or postmark it by Oct. 6, 2025.

Settlement administrator’s mailing address: Epay Systems Inc. BIPA Settlement, c/o American Legal Claim Services LLC, P.O. Box 23369, Jacksonville, FL 32241

What proof or documentation is required to submit a claim?

• All class members must provide their Social Security or Taxpayer Identification number for tax purposes.
• To file an online claim, class members must enter the notice ID and PIN from their settlement notice.
• Most claimants can simply attest to their eligibility on the claim form. However, if the information provided does not match the class list, the settlement administrator may request:
• Alternate versions of the class member's name (e.g., maiden name, nickname)
• Their prior addresses in Illinois
• Their employer information during use of the Epay system

• Class members filing due to a name change must provide:
• A copy of their marriage license, divorce decree or court order
• A valid government-issued ID with their current name

• Class members filing on behalf of a deceased class member must provide:
• A copy of the death certificate
• Documentation showing they are the legal beneficiary (such as a will or estate documentation)
• Names and addresses of beneficiaries

Payout options

• Zelle
• PayPal
• Venmo
• Paper check

$1.53 million settlement fund breakdown

The $1,526,250 settlement fund includes:

• Notice and administration costs: To be determined
• Attorneys’ fees and expenses: Up to $579,975
• Service award to the class representative: $7,500
• Payments to class members who submit valid claims: The remainder of the fund

Important dates

• Exclusion deadline: Oct. 6, 2025
• Claims deadline: Oct. 6, 2025
• Final approval hearing: Nov. 18, 2025

When is the Mrozek v. Epay Systems Inc. payout date?

The settlement administrator will distribute settlement payments approximately 30 days after the court grants final approval and any appeals are resolved.

Why was there a class action settlement?

The class action lawsuit alleged Epay Systems Inc. violated the Illinois Biometric Information Privacy Act by:

• Collecting, capturing or obtaining biometric data without informed written consent
• Failing to implement and follow a written policy for the permanent destruction of biometric data
• Disclosing or redisclosing biometric data without obtaining informed consent

Epay denies all allegations and any wrongdoing. The parties reached the settlement to avoid the risks and costs associated with continued litigation and to provide compensation to affected individuals.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ