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Pepsi Kronos settlement overview:
- Who: A New York judge has given the green light to a $12.75 million settlement between PepsiCo, New Tiger and their subsidiaries, and the companies’ employees.
- Why: The settlement resolves claims that the companies didn’t properly pay employees after their timekeeping system experienced a cybersecurity breach.
- Where: The Pepsi Kronos settlement was filed in a New York federal court.
A New York federal judge has given the green light to a $12.75 million settlement between PepsiCo and its employees to resolve claims the companies didn’t properly pay employees after their Kronos timekeeping system experienced a cybersecurity breach.
U.S. District Judge Nelson S. Roman granted preliminary approval of the settlement between the allegedly unpaid employees and defendant companies PepsiCo Inc., New Tiger LLC and subsidiaries including The Quaker Oats Company and Frito-Lay Inc. on Dec. 2.
The settlement stemmed from lawsuits filed after workforce management company Kronos was hacked in 2021, suffering an outage and disruption in services to its timekeeping softwares.
Kronos timekeeping and payroll systems are widely used by major corporations across the United States, many of which face similar class action claims.
In this case, it was alleged the hacking incident affected PepsiCo’s Kronos brand timekeeping systems and left the company unable to properly pay or give staff appropriate time off.
One PepsiCo plaintiff claimed Pepsi was not able to pay its staff or correctly track their hourly employees after the breach.
PepsiCo settlement to see underpaid workers paid missing wages
The PepsiCo settlement would benefit current and former employees of PepsiCo across the U.S. who were underpaid, plus a Fair Labor Standards Act collective and subclasses of employees in California and New York, with the class period spanning 17 weekly pay periods between Dec. 5, 2021, and April 8, 2022.
During an investigation into the incident, PepsiCo and the other defendants found they’d underpaid 23,801 workers by more than $23 million.
They also found they had overpaid 41,481 employees by more than $59 million, court documents say.
On May 6, PepsiCo and its co-defendants paid affected workers the $23.8 million sum, which represents the underpaid compensation figure owed to the members of the settlement class and the Fair Labor Standards Act collective.
If the settlement is approved, affected workers will also receive a share of $12.75 million. A final approval hearing is set for April 4.
Were you affected by the Kronos cybersecurity breach? Let us know in the comments!
The plaintiffs are represented by Seth R. Lesser and Christopher M. Timmel of Klafter Lesser LLP, Ryan A. Winters, Joseph F. Scott and Kevin M. McDermott II of Scott & Winters Law Firm LLC and Matthew S. Parmet of Parmet PC and Andrew R. Frisch of Morgan & Morgan PA.
The PepsiCo Kronos class action settlement is Emanuele Stevens et al. v. PepsiCo Inc. et al. Case No. 7:22-cv-00802, in the U.S. District Court for the Southern District of New York.
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30 thoughts on$13M Pepsi settlement over unpaid wages following Kronos hack approved
I worked during the time of the Kronos outage I never received a settlement check and I never felt like they got my check right. Who do I contact regarding this matter?
I feel the same all of us at Pepsi Fresno ca feel the same way, this suit seems way off
I felt like a lot of my overtime during the outage was never correctly distributed back to me. Southern district.