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Honda class action, Kronos hack overview:
- Who: A Honda worker is suing his employer alleging he and other non-exempt employees were underpaid
- Why: The worker says Honda didn’t pay him and other properly after a 2021 service outage in its timekeeping software Kronos
- Where: Alabama federal court
Honda did not pay its workers properly after the outage of its timekeeping system Kronos in December 2021, resulting in employees being underpaid, a new class action lawsuit alleges.
Brandon Whatley filed the class action lawsuit against Honda Development & Manufacturing of America LLC July 25 in an Alabama federal court, alleging violations of the Fair Labor Standards Act (FLSA).
Like many other companies that have been hit with class action lawsuits across the United States recently, Honda’s Kronos-based timekeeping and payroll systems were affected by a service outage beginning in December 2021, which allegedly led to problems in timekeeping and payroll throughout Honda’s organization.
As a result, Honda’s workers who were not exempt from overtime under federal law were not paid for all overtime hours worked and were not paid their proper overtime premium on time after the Kronos outage, Whatley says.
Honda could have paid employees properly, but didn’t, lawsuit alleges
Honda could have “easily implemented” a system to accurately record time and properly pay non-exempt hourly and salaried employees until issues related to the outage were resolved, the plaintiff alleges.
“Instead, Honda pushed the cost of the Kronos outage onto the most economically vulnerable people in its workforce.”
Whatley says he himself was not paid the proper overtime premium for all hours worked on time, if at all, for each of these weeks since the onset of the Kronos service disruption. Instead, Honda paid him an estimate.
Whatley is looking to represent all current or former non-exempt employees of Honda who worked in Alabama at any time during Honda’s Kronos service outage until Honda resumed normal employee timekeeping and payment operations.
He’s seeking certification of the class action, unpaid wages, damages, fees, costs and a jury trial.
Major companies hit with lawsuits after Kronos outage
Honda is not the only company facing class action claims after the Kronos hack.
In May, Keurig Dr. Pepper and Coca-Cola Consolidated were each hit with a class action lawsuit alleging employees were not paid for their hours worked or proper overtime pay after the company’s Kronos payroll system was hacked.
Those two lawsuits were on top of lawsuits filed by employees at some of the largest companies in the country, including PepsiCo Inc., DHL, Allstate and T-Mobile, alleging violations of federal labor laws in the wake of the Kronos system going down.
Did the December 2021 Kronos ransomware attack cause you to be paid late or not be paid in full? Let us know your experience in the comments.
The plaintiff is represented by Victoria L. Dye, Andrew R. Frisch and C. Ryan Morgan of Morgan & Morgan Birmingham PLLC and Matthew S. Parmet of Parmet PC.
The Honda Kronos hack class action lawsuit is Brandon Whatley v. Honda Development & Manufacturing of America LLC, Case No. 1:22-cv-00935-CLM in the U.S. District Court Northern District of Alabama Eastern Division.
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