Honda class action alleges Kronos hack led to employees not being paid correctly

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Honda class action lawsuit overview:

• Who: Plaintiff Raneesha Jackson has filed a class action lawsuit against Honda Development & Manufacturing of America LLC.
• Why: A service outage of the Kronos-based payroll system allegedly caused employees to be underpaid for the hours they worked during and after the Kronos hack.
• Where: The Honda class action lawsuit was filed in South Carolina federal court.

Honda employees were not paid accurately as a result of a Kronos hack that affected the company’s timekeeping and payroll, according to a class action lawsuit filed Oct. 25 in South Carolina federal court.

Plaintiff Raneesha Jackson, a Honda employee, says Honda Development & Manufacturing of America LLC utilizes Kronos for timekeeping and payroll services.

In December 2021, Kronos payroll services were reportedly disrupted due to a ransomware attack. This Kronos hack allegedly interfered with Honda’s ability to track employees’ hours and pay them accurately.

Honda intentionally underpays employees following Kronos hack, plaintiff says

In the wake of the Kronos hack, the plaintiff says Honda has failed to accurately track the hours employees worked. Instead, the company uses various methods to estimate employees’ work hours, the Honda class action lawsuit alleges.

“As a result of Honda’s failure to accurately track their actual hours worked each week, employees who were non-exempt and worked overtime were in many cases paid less than the hours they worked in the workweek, including overtime hours,” the Honda class action lawsuit states.

Jackson says she works more than 40 hours each workweek and is therefore entitled to overtime pay under the Fair Labor Standards Act (FLSA). However, she says, she has not been properly paid overtime for all of the hours she worked in excess of 40 hours per week since the Kronos hack, in violation of the FLSA.

Instead of calculating the actual number of hours non-exempt employees work, Honda allegedly bases its calculation on an arbitrary estimate that does not consider the actual number of hours worked. The Honda class action lawsuit says that this inaccurate method of calculating work hours was intentional and that many Honda employees have been underpaid as a result.

“In other words, Honda pushed the effects of the Kronos outage onto the backs of its most economically vulnerable workers, making sure that it kept the money it owed to those employees in its own pockets, rather than take steps to make sure its employees were paid on time and in full for the work they did,” Jackson alleges in the Honda class action lawsuit.

Kronos recently agreed to pay $15 million to settle a class action lawsuit alleging its fingerprint time clocks violated Illinois privacy laws.

Have you been affected by the Kronos hack? Tell us about your experience in the comments!

Jackson is represented by Joseph Sandefur and Andrew R. Frisch of Morgan & Morgan PA and Matthew S. Parmet of Parmet PC.

The Honda class action lawsuit is Raneesha Jackson v. Honda Development & Manufacturing of America LLC, Case No. 3:22-cv-03716-MGL, in the U.S. District Court for the District of South Carolina, Columbia Division.

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