Kronos Cyber Attack Sparked a String of Employment Law Complaints

The string of very similar employment law complaints filed following the December 2021 Kronos cyber-attack clearly shows how third-party security breaches can cause significant problems. These problems aren't only felt by the company that was hacked, but often by all the businesses depending on their products or services in their own business practices.

2022 Wage and Hour Class Actions Stemming from Kronos Cyber Attack:

The following is a sampling of the wage and hour class actions filed against companies who used the Kronos payroll and timekeeping software during the December 2021 ransomware attack. Plaintiffs in the cases allege that the Kronos hack resulted in overtime pay violations for hourly workers. The string of litigation shows clearly that third-party cyber-breaches can lead to significant consequences in the form of labor and employment law claims.

Henderson v. Johnson Controls, Inc. (2:22-cv-00414)

Parrish v. Frito-Lay North America, Inc. (4:22-cv-00284)

Ellis et al v. PepsiCo, Inc. (3:2022cv01895)

Mitchell v. Baptist Health System, Inc. (3:2022cv00383)

Holbert et al. v. The Giant Company LLC (1:2022cv00501)

Details of the Wage and Hour Class Action Cases:

In early April, Johnson Controls, Inc. was sued on behalf of a putative class of current and former non-exempt hourly employees in the Eastern District Court for the District of Wisconsin. Frito-Lay North America, Inc.(a subsidiary of PepsiCo) was also sued in early April on behalf of a putative class of current and former non-exempt hourly employees, but this case was filed in the U.S. District Court for the Eastern District of Texas. PepsiCo itself has been sued three times so far in connection to the Kronos breach. First, at the end of March in the U.S. District Court for the Southern District of New York on behalf of a class of current and former non-exempt hourly employees. Second in the U.S. District Court for the Central District of California on behalf of a class of current and former non-exempt hourly employees (also at the end of March). And third, Ellis et al. v. PepsiCo, Inc., in the U.S. District Court for the District of New Jersey. In early April, Baptist Health System was sued on behalf of current and former non-exempt hourly employees in the U.S. District Court for the Middle District of Florida. And The Giant Company was sued (also in the first week of April) on behalf of current and former non-exempt hourly employees in the U.S. District Court for the Middle District of Pennsylvania.

Plaintiffs Cite Similar Allegations in the String of Wage and Hour Lawsuits:

The various lawsuits stemming from the Kronos data breach in December 2021 include similar wording and allegations stating that after being made aware of the situation, defendants could have implemented systems to record hours and pay wages until the issues resulting from the hack were addressed, but they didn't take action. Some of the complaints also indicated that the defendants let the financial consequences of the Kronos hack fall on their frontline workers and that average American workers rely on their full wages paid in a timely manner to make ends meet in their day-to-day lives. Class actions seek to recover unpaid wages and damages as well as penalties and interest.

If you have questions about California employment law or need to discuss labor law violations in the workplace, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.