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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 was affected by the Kronos outage in Clinton County, Indiana. I am no longer employed there, and I received a notice from their “overpayment team” that I am to write a check to them for the overpayment amount or I will be forwarded to the credit bureau. There have been several failed attempts to contact them about re-payment options and several voicemails left – to no return. I requested to see an itemized list of the hours reported, as the plant in Indiana had us manually write down the hours we worked. Again, I have not received any correspondence to my request to work through this with them. It was a serious inconvenience at the time of the outage, and even after no longer being employed there, it remains an inconvenience to work with this corporation.
I was affected by the hacking of pepsi Kronos
I was a new hire an was affected also
I was affected by this and many others in Burnsville Mn, I was forced to work 7 days a week 16 hrs a day for almost 3months and I was only paid $1,100 for lost wages.
Facts!!! I worked 6 days a week 12-16hrs each day for 4-5 months due to all the people taking advantage of Covid and all the people taking advantage of their fixed averages weekly checks (no matter how many hours we worked we got an average of our previous 12 weeks ) so many people worked very little and collected a high average check no matter if they didn’t show up for weeks at a time
I was affected in Orlando Florida
They fired me January 27th but the union said they didn’t have right filed agreements filed arbitration I still haven’t heard anything and they had to reimburse me over $9,000 in May but they already ruined my life
Ruined your life? Seems like you still have an internet connection .
we at pepisco indianapolis gatorade were affected, A lot of employee’s said there pay was not right.
In N.Y. I was working at PepsiCo during that time and was underpaid thousands, like 60 hrs of O.T. and then they had the nerve to terminate me for supposedly stealing 6 minutes of company time… Like literally while they still owed me thousands of dollars and thousands of minutes of overtime they have the audacity to say I tried to steal 6 minutes. Still mind blowing to me smh
I was affected in Piscataway New Jersey
I was affected in Houston, Tx 9300 la Porte plant employed May 18’-April 22’
We at PepsiCo in Collierville,Tn was affected by 10 weeks
I work at Tropicana and worked many hours and haven’t gotten paid for any during that time. Three months of incorrect checks just for them to say they owe me $0
We At Pepsico Indpls Gatorade plant was affected over 13 weeks