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Updates on payroll processing issue

Messages from Diane Johnson May, Chief Human Resources Officer, with details for hourly employees on payroll processing issue

April 26, 2022

An update on timing for Kronos reconciliation statements

You’ve been very patient as we’ve navigated through this Kronos issue and I have some news to share with you today. We’ve finished analyzing the data we were able to access once Kronos was back online, and developed reconciliation statements that show any differences between what you were paid and what you should have been paid during that time.

Here’s what’s going to happen:

  • During the week of May 2, we’re sending the reconciliation statements to local HR at each site. Each employee’s statement will arrive in an individual envelope.
  • Local leadership will distribute the envelopes to each employee as quickly as possible.
  • Each envelope will contain a cover letter that describes whether you were overpaid or underpaid during the Kronos outage period and an explanation of the information that appears on your reconciliation statement.
  • If you were overpaid, you’ll also receive a repayment agreement.
  • Local HR will be available to explain the statement and answer your questions.

Approximately 66% of our hourly employees were overpaid during the outage. That money needs to be paid back because it was not earned. Depending on the amount that needs to be repaid, we’ve developed a time frame for repayment over a number of weeks through payroll deduction. You will also have the option to repay by check. If you were overpaid, you’ll see your repayment schedule within your repayment agreement.

Employees who were overpaid must sign a repayment agreement and return it to their local HR team. Nothing will be deducted from your paycheck until you’ve signed and submitted a repayment agreement.

If you were underpaid, you’ll be repaid in a separate paycheck in May.

We know the impact of the Kronos cyberattack has been difficult and frustrating, and we appreciate your ongoing cooperation and understanding. If you have any questions as we enter this last phase, please reach out to your local HR team.

Diane Johnson May
Executive Vice President and Chief Human Resources Officer

February 17, 2022

Kronos reconciliation phase is making progress

It’s been a few weeks since we provided you with an update on the Kronos outage. The Kronos system has been back online for a few weeks. Since Jan. 23/24, your paycheck has been based on your actual hours worked.

Reconciliation next steps:

  • All locations are reviewing and editing the time and attendance data for the seven weeks Kronos was not operational (e.g., adding missed punches, etc.). We expect this work to be completed for all locations by the end of February.  
  • The final data will then be processed in Kronos, which will identify any underpayments or overpayments in your pay during that seven-week period. This process will take several weeks to complete.
  • Once it’s complete, you will be provided with a detailed statement showing any differences between what you were paid and what you should have been paid based on your actual hours worked.

Please know we’re working as quickly as possible to ensure the statements we provide you are accurate and complete. We will continue to keep you posted on our progress, and we appreciate your patience. Please reach out to local HR if you have any questions.

Diane Johnson May,
Executive Vice President and Chief Human Resources Officer

January 20, 2022

Kronos access to be restored

As previously communicated, the Kronos system is coming back online. The Kronos team is preparing the system for a safe and accurate return to service. 

Kronos will be back online with the start of the next workweek. Here’s what this means for you:

  • Continue to use the Kronos timeclocks.
  • You can access Kronos on a plant kiosk starting 9 a.m. ET on Sunday. Please note that your timecard and attendance data between Dec. 11, 2021, and Jan. 23, 2022, still needs to be reviewed and verified during the reconciliation process.
  • Hourly employees hired after Dec. 11, 2021, will be able to use the Kronos timeclocks to track their time worked starting with the workweek that begins Jan. 23/24.
  • Your paycheck on Feb. 3 will reflect pay based on your actual hours worked during the workweek beginning Jan. 23/24.

In the weeks ahead, we’ll reconcile your pay for any underpayments or overpayments and process adjustments accordingly. Once that work is complete, we will provide you with a reconciliation statement showing the difference between what you were paid and your actual hours worked. We will continue to keep you posted on our progress and final timing on the reconciliation.

As I shared on Jan. 6., because of the Kronos issue, you may also receive a corrected W-2 for 2021 – known as a W-2C. Once we have completed the reconciliations, we’ll be able to determine who needs a W-2C. Scroll down to see the full details provided in the Jan. 6 communication.

Thank you for your continued patience and understanding. Please contact your local HR team if you have any questions.

Diane Johnson May,
Executive Vice President and Chief Human Resources Officer

January 6, 2022

An update on Kronos and W-2s

Hello everyone,

The Kronos issue has not yet been resolved, but we’re hearing encouraging news that Kronos is making headway in being able to get customers like us back online in the weeks ahead. When that happens, we’ll start reconciling your pay to make sure you’ve been paid for all the hours you were owed from each week. Until then, you’ll continue to receive the average of your earnings for the four weeks before the week of Thanksgiving, including any adjustments that had to be made by your local HR representative.

We’ve received a few questions about how this payroll issue may affect 2021 W-2s, so I want to address how that will be handled. Employers are required to provide IRS W-2 forms to their employees each year by Jan. 31. You will receive your W-2 by that date as usual.

This year, because of the Kronos issue, you may also receive a corrected W-2 for 2021 – known as a W-2C. Once we have completed reconciliation of all the weeks of pay we had to adjust since the Kronos outage, we’ll be able to determine who needs a W-2C. At that time, we’ll provide you with a detailed reconciliation statement that will also let you know if you’ll be receiving a W-2C. As noted above, we cannot determine who may need to receive a W-2C until we complete the reconciliation process.

A W-2C form is used to report a correction to your original W-2 form, so if you receive both forms, you should submit both when you file your income tax return this year. If you file your return early and then receive a W-2C, you will need to file an amended tax return.

If you have any questions about W-2C forms or this process, please contact your local HR representative.

Thank you for your continued patience and understanding as this situation is resolved. We are hopeful that an end is in sight and will continue to keep you informed as we learn more.

Diane Johnson May,
Executive Vice President and Chief Human Resources Officer

December 22, 2021

Hello everyone,

As I shared on Friday, in your paycheck this week, you should see an amount that’s an average of your earnings for the four weeks before the week of Thanksgiving. We’re using this calculation to provide you with an estimated amount that is as close as possible to your average weekly earnings. We’ll continue to pay you this amount weekly until the Kronos issue is resolved.

You should also see the special one-time payment of four hours of regular pay reflected in your paycheck as an “Adjustment” to thank you for your patience. While this is just a small token of appreciation, I hope you find it helpful during this holiday season. The timing of this Kronos issue is unfortunate for many reasons, and I assure you our team will continue to do its best to ease the burden for you until it is resolved.

In the meantime, I hope you enjoy the holiday season. We recognize all the effort you’ve made to keep our business running through another challenging year, and we’re deeply grateful for your commitment. On behalf of the Campbell Leadership Team, I wish you a safe, healthy and happy new year!

Diane Johnson May,
Executive Vice President and Chief Human Resources Officer

December 17, 2021

We continue to be unable to access the Kronos timekeeping system to process employees’ time. The cyberattack Kronos experienced last weekend has impacted millions of employees from over 2,000 different companies. While there is nothing Campbell could have done to prevent this outage, we understand the inconvenience and frustration this likely has caused you. We have a large team working nonstop to make sure you continue to get paid.

Starting next week, we will use a new method to calculate your pay. Beginning with your next paycheck (Dec. 23), you will receive pay in an amount equal to the average of your earnings for the four weeks before the week of Thanksgiving.

We will continue to process this weekly amount during the Kronos outage in order to pay you an estimated amount that is as close as possible to your average weekly earnings. We have been told by Kronos that this outage could last a few weeks. As we previously shared, after our Kronos access is restored, we will adjust these payments with each employee’s actual time worked and handle any underpayments or overpayments.

We know this is creating a lot of stress during the holiday season and want to help by providing you a special one-time payment of four hours of pay, based on your regular base rate, to thank you for your patience. This amount will appear as an “Adjustment” on your Dec. 23 paycheck. We will not seek repayment from you for this special payment.

If you find that the amount of pay you receive under this new method still presents a hardship for you, contact your local Human Resources representative to discuss.

I will continue to provide updates as this situation evolves. In the meantime, please reach out to HR with any other questions or concerns.

Diane Johnson May,
Executive Vice President and Chief Human Resources Officer