McDonald’s Operator Loses One Insurance Shield in Privacy Suit

An insurer doesn’t have to defend a company that operates thirteen McDonald’s Corp. restaurant franchises in Illinois from a class action alleging biometric privacy violations that stem from a worker timekeeping system.

The worker’s claims fall under Austin Mutual Insurance Company’s policy coverage exclusion governing disclosure of personal information, according to a Wednesday ruling from the U.S. District Court for the Northern District of Illinois.

A restaurant worker alleged in a class action brought on behalf of other employees that Carnagio Enterprises Inc., the franchise operator, violated a state privacy law by requiring them to scan their fingerprints for each ...