Community Health Network Sued for FLSA Violations After Kronos Hack


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

According to the complaint, Kronos was hacked in 2021, which resulted in employees being unable to properly report overtime hours worked and receive automated payments from their employers. This hack was not limited to the health care industry but also affected many large employers in others industries, such as Pepsi Co.

Similar to a suit against Pepsi, the plaintiffs accuse the employers of failing to implement an alternative system for reporting and instead choosing to estimate the necessary payments by using prior payments, which resulted in employees who had performed overtime work not receiving payments in accordance with the Fair Labor Standards Act.

The plaintiffs are seeking class certification, awards of unpaid wages, liquidated damages, and penalty damages, restitution, pre- and post-judgment interest, attorney’s fees and costs, and other relief. Plaintiffs are represented by Parmet PC.