Spotlight on Detroit: 40-Year Old Payroll System Leaves Police Without Pay

How would you feel if you received nada on payday? That was the reality for close to 1,600 Detroit employees who were either not paid or worse, had money accidentally deducted from their paychecks, Friday, August 5th.

According to The Detroit News, approximately 18 percent of Detroit’s 9,000 employees did not receive paychecks, and 275 workers with accounts at Bank of America did not receive paychecks directly deposited into their accounts. The majority of those impacted are reportedly police personnel.

Back in January, auditing firm Ernst & Young recommended the city implement time clocks as part of an overhaul of the city’s antiquated 40-year-old payroll system, a suggestion that was made during the city’s bankruptcy proceedings.

Fittingly enough, the payroll system in question is the source of the errors that occurred, as city spokesman Dan Austin commented that the payroll error was caused by a glitch in the system wiring money from Detroit’s accounts with Comerica Bank to Bank of America.

In an update, Monday, Detroit Human Resources Director Denise Starr stated that the accidental deductions made to approximately 1,300 city workers stemmed from a clerical error, and “precautions and accountability have been put in place to prevent that in the future.”

Those funds were being refunded Friday night, officials said.  According to city officials on Monday, “a very small number” of employees are still waiting for paychecks, with the majority of those affected have received their checks on Friday, over the weekend or on Monday.

The new payroll system is slated to replace the 40-year old payroll system in 2017, says Austin. If you’re using an antiquated payroll system, consider implementing biometric time clocks that integrate directly with a cloud-based system. Better yet, look for a time clock system with online payroll functionality, like FingerCheck360 time tracking and payroll software.

From clock in to cash out, one platform tracks and manages time and processes timesheets at the end of each pay period. Sign up for a 30-day free trial today.