The lawsuit relays that Allied Universal, a security services company who employs over 800,000 workers, has used the Kronos timekeeping and payroll system since at least December 11, 2021, when the system was the target of a ransomware attack. The case alleges Allied Universal’s apparent failure to pay employees the entirety of their wages, including overtime, violates the federal Fair Labor Standards Act (FLSA) and several California statutes.
Allied universal time off policy full#
Instead of paying workers for their actual hours, Allied Universal based their wages on prior pay periods or “reduced payroll estimates” that failed to account for some of the workers’ time, the lawsuit claims.Īs a result, the economic burden of the Kronos data breach was placed on the shoulders of “front-line workers-average Americans-who rely on the full and timely payment of their wages to make ends meet,” the suit contends. “Allied Universal 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,” the complaint alleges.
The 23-page case says that after Kronos, the defendants’ timekeeping and payroll system, became inoperable in December 2021 due to a cyberattack, Allied Universal failed to take the necessary steps to accurately track workers’ hours and pay them due overtime wages. New to ? Read our Newswire DisclaimerĪllied Universal Security Services and a slew of affiliates face a proposed class and collective action that claims they’ve failed to properly pay employees in the wake of a 2021 data breach that crippled the companies’ timekeeping system.
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