Magistrate Balks at Sodexo Worker Deal in Post-Hack Wage Case

Sodexo Inc. and workers who say the food service company underpaid them after a cyberattack knocked third-party timekeeping system Kronos offline should rework the terms of their $3 million settlement, a federal magistrate judge recommended.

Sodexo workers allege the company failed to accurately track and compensate hours during the several-month outage, suing their employer under the Fair Labor Standards Act in the US District Court for the District of Maryland. The parties have agreed to a settlement of $3,100,000 for underpaid workers and sought court approval of the deal.

A federal district court reviewing the agreement expressed concern about the ...