A potential class-action lawsuit has alleged that Honda improperly estimated employees’ hours worked while its timekeeping software, Kronos, was offline following a ransomware attack.
The UKG timekeeping and payroll product went down in December 2021 and many clients were without service for weeks. Employment law attorneys told HR Dive at the time that affected employers should shift to a backup timekeeping method. And where previous timekeeping data was lost, employers were advised to make their best efforts to pay employees properly; suggestions included asking employees to self-report those hours and paying workers based on past pay periods.
In Whatley v. Honda Development & Manufacturing of America, LLC (No. 1:22-cv-00935 (N.D. Ala. July 25, 2022)), a Honda employee alleged that for at least a portion of the time following the outage, Honda failed to keep accurate track of his and others’ hours.
Instead, it used various methods to estimate workers’ hours, the lawsuit claimed, which resulted in the plaintiff and other workers being paid less than the Fair Labor Standards Act requires, especially with respect to overtime hours.
“Honda could have instituted any number of methods to accurately track and timely pay its employees for all hours worked. Instead of accurately tracking hours and paying employees their overtime, Honda decided to arbitrarily pay these employees, without regard to the overtime hours they worked or the regular rates at which they were supposed...
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