Community health network sued for FLSA violation after Kronos hack

Friday, a class action lawsuit filed in the Southern District of Indiana on behalf of all non-exempt employees who worked overtime at defendant, Community Health Network Inc. The case alleges the failure to properly pay overtime as a result of the hacking of the HR technology company Kronos in December 2021.

According to the complaint, Kronos was hacked in 2021, which prevented employees from properly reporting overtime hours worked and receiving automated payments from their employers. This hack was not limited to the healthcare sector, but also affected many large employers in other sectors, such as Pepsi Co.

Similar to a lawsuit against Pepsi, plaintiffs accuse employers of failing to implement an alternative reporting system and instead choosing to estimate necessary payments using past payments, which resulted in employees who had worked overtime were not receiving payments under the Fair Labor Standards Act.

The plaintiffs seek class certification, an award of unpaid wages, damages and penalties, restitution, pre- and post-judgment interest, attorneys’ fees and costs, and other relief. The plaintiffs are represented by Parmet PC.

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