Pepsi sued for unpaid overtime related to Kronos hack

PepsiCo Inc., along with several of its subsidiaries and related companies, have been sued numerous times for overtime violations related to its failure to timely pay its employees after its timekeeping system company, Kronos, was hacked.  The lawsuits allege that Pepsi violated federal wage laws by failing to timely pay hourly employees overtime compensation for all hours worked over 40 per week following the Kronos security breach. Kronos was hacked in December 2021, which shut down Pepsi’s timekeeping system.  Rather than implement another timekeeping system, the lawsuits allege that Pepsi estimated the hours worked, resulting in undercounted hours and underpayments to the workers.  The lawsuits seek, among other damages, recovery of unpaid overtime, liquidated damages, attorney’s fees and costs. 

The Fair Labor Standards Act require that an employer must pay non-exempt employees at the rate of not less than one-and-one-half times their regular rates of pay for all hours over forty hours each workweek. Some states have enacted more stringent overtime laws that allow other remedies for unpaid overtime.  New Mexico, for example, has an overtime statute that allows recovery of treble damages for unpaid wages (meaning that if a worker is owed $1,000 in unpaid overtime, the employer may be obligated to pay three times that amount, or $3,000).

Josh Borsellino is an experienced Texas attorney that represents workers on claims for unpaid wages.  He has represented hundreds of workers in dozens of overtime cases across Texas and New Mexico and other states.  If you would like more information about the Pepsi overtime lawsuits or to determine if you were affected, please email Josh through this link or you can call at 817.908.9861.  All inquiries by phone or email are free, confidential, and require no obligation.  

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