UKG Faces Payroll Violations Class Action Lawsuit in Multiple U.S. District Courts

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CySecurity News – Latest Information Security and Hacking Incidents

 

Workforce management company Ultimate Kronos Group faces a proposed class action after its ubiquitous Kronos timekeeping system got whacked by ransomware last December. The aggrieved customers dragged the firm into court as scheduling and payroll were hindered at thousands of organizations including Tesla, PepsiCo, Whole Foods.

Due to the network outage, many major firms were unable to pay workers on time for all of their wages, including overtime wages, and shift differentials, as they rely on Kronos products for timekeeping and prompt pay policies. 

Employees at Tesla and PepsiCo filed a class-action lawsuit against UKG in the U.S. District Court in the Northern District Court of California seeking damages due to alleged negligence in data security procedures and practices. New York MTA employees filed a separate suit in the U.S. District Court for the Southern District of New York against the MTA, alleging it failed to pay overtime wages due to the Kronos outage.

According to John Bambenek, principal threat hunter at security firm Netenrich, the response and recovery from the ransomware attack is UKG’s responsibility, but failure to make payroll, a potential violation of the federal F

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