Society

Pay Delayed For 40,000 Federal Workers After Payroll Processing Center Error

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moneymoney

More than 40,000 federal employees didn’t receive their paychecks on Friday due to an error at a payroll processing center. The workers have been told they will receive their pay on Tuesday.

The official pay date for the employees who didn’t get paid is the first Tuesday after a pay period ends, meaning their next checks are technically due Sept. 17. However, employees whose checks are deposited directly into bank accounts normally receive their funds early, on the Friday before the official payday, according to The Washington Post.

The Interior Department’s Interior Business Center, which was responsible for the mistake, said in a statement Friday that workers would receive their money Tuesday, but the mistake raised concerns about possible overdrafts for employees who were counting on the funds being available Friday.

"The federal government may not compensate employees for overdraft or other financial institution fees … but I.B.C. can provide written confirmation that the errors occurred outside of the employee's control and make requests on behalf of the employee that the financial institutions waive any resulting fees," said Michael Fernandez, spokesperson for the Interior Business Center, according to Circa.

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The IBC says it is alerting more than 1,800 banks of the processing error. It has reportedly been working to implement a system to catch these types of issues before they happen in the future.

The IBC handles payments for 240,000 employees at 42 agencies, including NASA, the Federal Election Commission, the Pension Benefit Guaranty Corp. and the National Archives and Records Administration.

Sources: The Washington Post, Circa