Kronos Hack Wage Suits Show Legal Risks of Payroll Outsourcing

The cyberattack against human resource company Ultimate Kronos Group has triggered a wave of wage-and-hour lawsuits against employers, highlighting the scope of potential liability associated with relying on third-party software for payroll functions.

Workers have filed nearly 20 proposed collective actions alleging violations of the Fair Labor Standards Act since the Kronos hack was disclosed in December, including lawsuits against PepsiCo Inc., Olin Corp., and Marriott International Inc.

U.S. government officials have warned of potential Russian cyberattacks against private companies, adding to the hacking hazards that firms face.

Lawsuits alleging privacy violations, breach of contract, and negligence are ...