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Allstate Kronos Overtime Data Breach Class Action Lawsuit Overview:
- Who: An Allstate employee is suing the company, saying it didn’t properly pay overtime to its workers following a hack of the Kronos payroll and timekeeping systems it used.
- Why: The plaintiff says that after the hack, the company didn’t accurately record employees’ overtime hours.
- Where: The class action lawsuit was filed in an Illinois federal court.
Allstate didn’t properly record or pay its workers overtime after the company that managed its payroll and timekeeping systems was hacked last year, a new class action lawsuit alleges.
Plaintiff Nadia Ward filed the class action complaint against Allstate May 3 in an Illinois federal court, alleging violations of the Fair Labor Standards Act.
According to the lawsuit, Ward, who has worked for Allstate since September, was paid portions of the overtime she worked. However, the compensation was not time-and-a-half of her regular pay rate as mandated by law.
The issues developed after the 2021 hack of workforce management company Kronos’ payroll and timekeeping systems, the lawsuit alleges
Allstate Relied on Estimates To Avoid Paying Proper Wages, Class Action Claims
After the hack, Allstate relied on prior pay periods or estimates of hours worked to avoid paying proper wages to non exempt hourly and salaried employees, Ward said.
She seeks to represent a nationwide class of nonexempt employees of Allstate and its subsidiaries who worked in the United States any time after the Kronos hack on Dec. 11, 2021. She’s also seeking certification of the class action, unpaid wages, fees, costs, damages and a jury trial.
The news comes after PepsiCo was hit with a class action lawsuit similarly alleging the company has been unable to properly pay staff since the Kronos hack.
Did the December 2021 Kronos ransomware attack cause you to be paid late or not be paid in full for all of your hours, including overtime, shift differentials and similar additions to pay? If you are still owed any unpaid wages, or if your wages have been paid but were more than two to three weeks late due to the Kronos ransomware attack, you may be owed additional compensation (links to paid attorney content).
The Allstate employees are represented by Matthew S. Parmet of Parmet PC and Michael N. Hanna of Morgan & Morgan.
The Allstate Kronos Overtime Class Action Lawsuit is Ward, et al. v. The Allstate Corp., Case No. 1:22-cv-02316, in the U.S. District Court for the Northern District of Illinois.
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