792 F.Supp.3d 855
S.D. Ohio2025Background
- Plaintiffs, including Michael Albert, were Honda employees affected by a Kronos timekeeping system outage caused by a ransomware attack at Honda facilities from December 2021 to February 2022.
- During the outage, Honda could not access employee work hours, paid nonexempt employees for 40 hours/week (regardless of overtime), then tried several interim pay solutions, ultimately switching to manual and PeopleSoft entries.
- After system recovery, Honda ran an extensive reconciliation process to determine and pay employees’ actual owed hours/overtime, and also offered a 10% inconvenience payment.
- Albert alleged violations under the Fair Labor Standards Act (FLSA), Ohio Overtime Compensation Statute, Ohio Prompt Pay Act, and a state civil remedy for criminal acts.
- Honda paid all wages, overtime, and penalties claimed by Albert, leading to its summary judgment motion arguing no ongoing claim or damages were possible.
- The principal legal question was whether delayed overtime payment (even if ultimately paid in full with extra compensation) violated the FLSA or Ohio law.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether late payment of overtime violates the FLSA | Late payments violate FLSA; entitled to liquidated damages even if repaid | All amounts paid; no violation; only possible claim is damages | FLSA claim not dismissed; delay may violate FLSA |
| Timeliness under 29 C.F.R. § 778.106 | Delay longer than "reasonably necessary"; no backup plan = not prudent | Paid "as soon as practicable" given outage circumstances | Issue of reasonableness of delay is jury question |
| Liquidated damages under FLSA | Entitled unless Honda proves good faith & reasonable grounds | Acted with good faith; paid all owed plus 10% compensation | Not decided; deferred until violation found |
| Ohio Overtime, Prompt Pay, and Criminal Act claims | Prompt Pay: entitled to statutory liquidated damages for late payment | Paid all owed, plus 10%, exceeding Ohio penalty | Overtime statute claim dismissed; Prompt pay & criminal act claims remain undecided |
Key Cases Cited
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (summary judgment standard; reasonable jury test)
- Celotex Corp. v. Catrett, 477 U.S. 317 (burden shifts to non-movant to show a genuine factual issue)
- Herman v. Fabri-Centers of Am., Inc., 308 F.3d 580 (late payment of overtime can constitute an FLSA violation even if made in full later)
- Brooklyn Sav. Bank v. O'Neil, 324 U.S. 697 (FLSA liquidated damages ensure restoration for delayed payment of minimum/overtime wages)
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (summary judgment appropriate where evidence cannot support non-movant)