The Kroger Co. (“Kroger”) agreed to pay $21M to almost 47,000 workers to settle a class action after a payroll system glitch caused employees to be paid untimely, and for some, incorrectly.
The lawsuit alleged that a technology glitch following a change in payroll software resulted in workers receiving their pay late – sometimes by weeks – as well as not being paid for some hours worked during and around the time of the glitch. Thus, the lawsuit alleged that Kroger failed to properly compensate workers and denied them of money they earned in violation of wage laws. The lawsuit further alleged that as a result of the late payments and loss of pay, workers suffered financial strain.
What would a respectful workplace have done?
Employers have an obligation to timely, and accurately, pay their employees, even when technology is not on their side. This means ensuring safeguards and backup measures are in place when changing payroll systems and coming up with timely alternatives when technology fails them.
Make sure your managers understand their duties with respect to paying employees. To find out more about our training programs or to book a workshop, please call 800-458-2778 or email us.
Information here is correct at the time it is posted. Case decisions cited here may be reversed. Please do not rely on this information without consulting an attorney first.
