Councilors highlighted the distress caused to city employees due to the delay. Employees expected their paychecks on July 4th, but due to an error, the checks were unavailable until the following Monday. This delay was especially problematic as it happened during a holiday weekend when banks were closed, exacerbating financial difficulties for many workers. The councilors pointed out that this error severely impacted trust and reliability in the city’s employment practices, with one councilor recounting personal experiences of financial strain due to the delay.

The issue stemmed from an error in the payroll schedule. The payroll calendar had initially accounted for the holiday, scheduling the payday for July 3rd. However, a mistake in entering the date into the system resulted in checks being scheduled for July 4th. This error was only discovered after the checks were printed, leaving little time for corrective action. The administration explained that while they attempted to work with banking partners to make funds available early, this was not possible for many employees due to the holiday.

Panelists, including the City Auditor, Chief People Officer, and Chief Financial Officer, acknowledged the error and detailed the steps taken to resolve the issue. They apologized to affected employees and explained the logistical challenges faced in rectifying the situation. Efforts included contacting banks to facilitate early fund availability and working with union partners to address employee concerns about overdraft fees. While most banks could not process funds until the next business day, 18 out of 20 overdraft fee waiver requests were resolved with banks.

To prevent future occurrences, the administration implemented new measures, including additional checkpoints between the auditing treasury and human resources. These measures involve weekly checks of the payroll calendar and plans to automate holiday date uploads into the payroll system to eliminate manual errors. The administration recognized the need for improved communication, noting that the notification to employees could have been more efficient.

The discussion revealed disparities in payment experiences among employees, depending on their banking institutions. Some smaller banks were unable to accommodate urgent requests, leading to unequal payment experiences. This prompted concerns about how the city managed communication with employees, especially those banking with smaller institutions.

They expressed a desire for a formal after-action report detailing the incident, its causes, and steps taken to prevent a recurrence. The potential legal implications of the payroll delay were also discussed, with questions raised about whether the city might have violated labor laws by failing to pay employees on time.

The council and administration acknowledged the significant workload of city employees and expressed regret over the incident. They reiterated their commitment to enhancing systems to protect against future errors and emphasized the need for improved communication strategies to ensure timely payment to city employees.