Workers Sue Allstate For Unpaid OT After Kronos Hack

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By Celeste Bott (May 4, 2022, 6:58 PM EDT) — A proposed collective action claims Allstate Corp. has inadequately paid overtime to workers after having problems with its timekeeping and payroll following the 2021 hack of workforce management company Kronos’ payroll and timekeeping systems.

Lead plaintiff Nadia Ward, who has worked for Allstate since September, claimed in Illinois federal court on Tuesday that the insurer violated the Fair Labor Standards Act by failing to implement a system to accurately record hours worked and properly pay its workers until issues related to the Kronos ransomware hack was resolved.

What it did instead, she says, is rely on prior pay periods or estimations…

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