Masonite Hit with Unpaid Wage Allegations in Wake of Kronos Data Breach

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Masonite Corporation faces a proposed collective action over its alleged failure to properly pay employees after a data breach crippled its timekeeping system in December 2021.

According to the 11-page case, when Kronos, the payroll and timekeeping system used by Masonite, experienced a service outage that began on December 11, 2021 due to a data breach, the defendant failed to accurately record employees’ work time and pay them appropriate wages, including for overtime hours.

Per the case, Masonite, a residential and commercial door manufacturer with over 15,000 employees, has violated the federal Fair Labor Standards Act by failing to ensure that its workers were properly paid.

The lawsuit alleges that in the wake of the Kronos service outage, Masonite “could have easily implemented a system” to accurately record workers’ hours and pay them accordingly. Instead, the company used “various methods” to estimate the number of hours each employee worked, which in many cases resulted in workers being underpaid, according to the suit.

“Instead of accurately tracking hours and paying employees their overtime, Masonite decided to arbitrarily pay these employees, without regard to the overtime hours they worked or the regular rates at which they were supposed to be paid,” the complaint contends.

The plaintiff, who has worked for Masonite since April 2021, says she consistently works more than 40 hours per week yet has not been paid at the proper overtime rate, if it all, for her weekly hours exceeding 40 ever since the onset of the Kronos data breach. Per the suit, Masonite paid the plaintiff based on “arbitrary considerations other than [her] actual hours worked and regular pay rates, in multiple workweeks.”

The plaintiff looks to represent current or former non-exempt employees of Masonite who worked for the company at any time during the Kronos service outage beginning around December 11, 2021 until the time Masonite regained full access to Kronos products and services and resumed normal timekeeping and payment operations.

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