PepsiCo Sued Again for Failure to Pay Overtime Wages in the Wake of the Kronos Hack

In the wake of the Kronos hack of December 2021, PepsiCo workers have filed lawsuits seeking lost wages as a result of Pepsi’s timekeeping software being disrupted. On Monday, another lawsuit was filed by Tracy Ellis in the District of New Jersey against PepsiCo Inc. for allegedly failing to pay proper wages and overtime fees to her.

Kronos is one of the world’s largest human resources companies that works with other companies to manage their timekeeping and payroll information, was hacked in December 2021, which disrupted the use of their services for thousands of major businesses worldwide. PepsiCo workers like the plaintiff “were not paid for all hours worked or were not paid their proper overtime premium” for overtime hours they have worked since last December. The plaintiff contended that they “could have easily implemented a system for recording hours and paying wages to non-exempt employees until issues related to the hack were resolved.” However, PepsiCo allegedly used prior pay periods or reduced estimates to pay their employees overtime, thus making the “burden” of the hack fall on “average” American citizens.

Since the hack, PepsiCo supposedly has not kept “accurate track of the hours” that the plaintiff and similarly situated employees have worked in overtime, resulting in them getting paid less than they deserve and with overtime rates lower than the usual 1.5-2x pay. The plaintiff argued that PepsiCo could use other manual or digital systems to track worked hours properly but that they have failed to do so and thus are liable for the lost wages. Thus, Tracy Ellis is suing for violations of the New Jersey State Wage and Hour Law.

The plaintiff is seeking class certification, an order finding PepsiCo liable for violations of wage laws, awards of unpaid wages, fringe benefits, liquidated damages and penalties, restitution of wages, pre- and post-judgment interest, attorney’s fees and costs, and other relief.

The plaintiff is represented by Morgan & Morgan, P.A. and Parmet PC.