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Kronos T-Mobile Pepsi Dr. Pepper Allstate DHL Class Action Lawsuits Overview:
- Who: Employees of some of the nation’s biggest companies are suing their employers after a 2021 ransomware attack on accounting software provider Kronos.
- Why: The ransomware attack reportedly left dozens of businesses scrambling to record their workers’ hours and pay them on time.
- Where: The Kronos hack affects organizations and employees throughout the United States.
Workers nationwide say they have been paid late or shortchanged in their pay after a December 2021 ransomware attack on Kronos, a company that makes timekeeping products, left their employers scrambling to record their hours and pay them on time.
Now, employees at some of the largest companies in the country, including PepsiCo Inc., DHL, Allstate and T-Mobile, are taking action, hitting their employers with class action lawsuits alleging violations of federal labor laws.
Kronos Data Breach Resulted in Temporary Outage of Timekeeping Products
Kronos announced a ransomware attack on its cloud systems on Dec. 13, 2021. According to a blog post from the company, a number of its cloud-based timekeeping products were affected by the data breach. During the data breach investigation, various Kronos products were unavailable for use.
The Kronos ransomware attack and subsequent outage affected many employers’ ability to track and report employees’ work and overtime hours properly.
However, under the federal Fair Labor Standards Act, employers are required to track the hours worked by each employee and pay them promptly.
Many major companies have allegedly failed to pay workers on time and for all of their wages, including overtime wages, shift differentials and similar additions to pay, violations of federal labor standards, during the Kronos timekeeping outage.
T-Mobile, Pepsi, Dr. Pepper, Allstate, DHL Hit With Class Actions
PepsiCo workers were some of the first to file a class action lawsuit against their employer in April.
They alleged that the hacking incident affecting PepsiCo’s Kronos brand timekeeping systems left the company unable to properly pay or give staff appropriate time off.
Plaintiffs also claimed Pepsi has not been able to pay its staff or correctly track their hourly employees since the breach.
On May 5, T-Mobile was also hit with a class action lawsuit alleging it stopped paying its employees the hours they were entitled to after the Kronos hack.
In that case, the plaintiff, a T-Mobile worker, said the company could have easily implemented a system to accurately record time and properly pay non‐exempt hourly and salaried employees until issues related to the hack were resolved, but it did not.
Meanwhile, Keurig Dr. Pepper employees say they were not paid for their hours worked or proper overtime pay after Kronos was hacked, according to another class action filed in May.
The plaintiffs in that case also claimed Keurig Dr. Pepper could have “easily implemented” a temporary time-recording system to ensure non-exempt hourly and salaried employees were paid properly while the Kronos hack was being resolved but neglected to do so.
Over at Allstate, employees have filed a class action lawsuit against their employer saying, after the Kronos hack, they were only paid portions of the overtime they worked, not time-and-a-half as mandated by law.
DHL workers also say they were only paid portions of the overtime hours they worked, and at the incorrect rate. In a class action lawsuit, the employees argue that DHL knows how to pay overtime and that it is required to do so because it routinely paid overtime hours properly before the Kronos hack.
These cases seek to recover unpaid back wages, damages for the late payment of wages and other compensation.
Meanwhile, in February, Kronos Inc. reached a settlement agreeing to pay just under $15.3 million to thousands of workers who were allegedly harmed when the workforce management company collected and stored their fingerprints or palm prints in violation of Illinois privacy laws.
Do you work for a company that uses Kronos timekeeping products? 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. Click here for more information (links to paid attorney content).
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