Why Some Workers’ Next Paychecks May Be Delayed

A ransomware attack on one of the largest human resources companies in the country, Kronos Private Cloud, has a number of companies scrambling to figure out how they will pay their workers their next paycheck.

The ransomware attack impacted Kronos’ payroll systems, which are used to track employee hours and schedule shifts. Kronos noticed what it called “unusual activity” on Saturday, saying in a post on its customer board that its systems were down and could remain that way for several weeks.

In a statement, Bob Hughes, executive vice president at Kronos, said: “Given that it may take up to several weeks to restore system availability, we strongly recommend that you evaluate and implement alternative business continuity protocols.”

He continued, “We are working with leading cybersecurity experts to assess and resolve the situation, and have notified the authorities. The investigation remains ongoing, as we work to determine the nature and scope of the incident. ”

Customers of Kronos include the city of Cleveland, New York's Metropolitan Transportation Authority, Tesla and MGM Resorts International, in addition to a number of hospitals throughout the U.S., CNN reported. NBC News said that Whole Foods, GameStop, Honda and healthcare provider Ascension are also Kronos customers.

Some companies told CNN that they are working to come up with contingency plans to pay their staff their next payroll, including handing out paper checks.

John Riggi, the senior advisor for cybersecurity at the American Hospital Association, told NBC News that he has spoken with a number of hospitals about the incident and their plans for paying their employees as well as managing workers’ schedules and tracking hours.

“This could not have happened at a worse time. We've had a surge in COVID patients, flu patients,” Riggi told the news outlet. “It's a distraction to hospital administrators at a time when they don't need any additional burden or diversion of resources.

“Here we have all the sacrifices and hardships that our frontline heroes have been enduring right now to care for our patients. The last thing they should have to worry about, especially during the holiday season, is getting paid,” he added.

It was unclear which ransomware group was responsible for the hack, whether Kronos paid the hackers, or if any customer data was compromised.