A former employee of CFG Health Network filed a class action complaint against the healthcare provider in a federal New Jersey court on Wednesday to recover allegedly unpaid overtime wages that resulted from a ransomware attack.
Kronos Private Cloud, a service that includes workforce management software, was hacked in December 2021, preventing customers such as CFG from being able to track employee hours and pay through the service. Since the attack, CFG has failed to accurately track employee hours, instead estimating the number of hours employees work in each pay period or duplicating checks from prior pay periods. As a result, non-exempt employees who work overtime are paid less than the hours they have worked, and many are not paid for all their regular wages, the lawsuit claims.
“CFG 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 didn’t. Instead, CFG pushed the cost of the Kronos hack onto the most economically vulnerable people in its workforce.”
“CFG made the economic burden of the Kronos hack fall on front-line workers—average Americans—who rely on the full and timely payment of their wages to make ends meet,” court documents state.
The lawsuit claims CFG violated the Fair Labor Standards Act and the New Jersey State Wage and Hour Law.
The plaintiff is seeking a certified class action, unpaid wages, liquidated damages, penalties under federal and New Jersey wage laws, pre- and post-judgement interest rates, and costs and attorneys’ fees.
The plaintiff is represented by Morgan & Morgan PA and Parmet PC.
