inlineblue
Junior Member
What is the name of your state (only U.S. law)? Illinois, Indiana, California
I work in Illinois and our company outsources our HR services to a company in Indiana (our company has a presence in Indiana as well). The HR company, in turn, outsources payroll services to some company in California.
Our last payroll direct deposit was on Dec 19. Due to funding issues, we didn't get a deposit on Jan 2. The real problem occurred on Jan 9 when the payroll company (in CA) reversed the Dec 19 direct deposit without any notification (at least I was told there was no notification). This has affected almost all employees at my company. Apparently there was (and still is) some kind of funding dispute between the three involved companies. The really pathetic part is that everyone agrees the employees should've been paid. They just appear to be arguing over the source of the funds, or something to that effect (we haven't been given enough details).
Now, isn't this simply theft? None of the companies involved had any right to remove that money from our accounts since there were no payroll errors. And to do the reversal 3 weeks after the deposit is outrageous! Needless to say, quite a few NSF fees have resulted. The HR company assures us that this will all get resolved and they'll take care of any fees. Our company execs are truly sorry about this mess and they're trying hard to correct things, but I'm beginning to seriously doubt the competence of the people involved.
I've read through parts of Regulation E and can already see that this was not a legitimate reversal. Also, people have stated that reversals can happen only within 5 business days of the deposit, though I can't see where that is mentioned in Regulation E. In any case, I feel that we should perhaps seek legal action against the payroll company if this doesn't resolve itself properly (or maybe even if it does).
Anybody have any advice on this?
I work in Illinois and our company outsources our HR services to a company in Indiana (our company has a presence in Indiana as well). The HR company, in turn, outsources payroll services to some company in California.
Our last payroll direct deposit was on Dec 19. Due to funding issues, we didn't get a deposit on Jan 2. The real problem occurred on Jan 9 when the payroll company (in CA) reversed the Dec 19 direct deposit without any notification (at least I was told there was no notification). This has affected almost all employees at my company. Apparently there was (and still is) some kind of funding dispute between the three involved companies. The really pathetic part is that everyone agrees the employees should've been paid. They just appear to be arguing over the source of the funds, or something to that effect (we haven't been given enough details).
Now, isn't this simply theft? None of the companies involved had any right to remove that money from our accounts since there were no payroll errors. And to do the reversal 3 weeks after the deposit is outrageous! Needless to say, quite a few NSF fees have resulted. The HR company assures us that this will all get resolved and they'll take care of any fees. Our company execs are truly sorry about this mess and they're trying hard to correct things, but I'm beginning to seriously doubt the competence of the people involved.
I've read through parts of Regulation E and can already see that this was not a legitimate reversal. Also, people have stated that reversals can happen only within 5 business days of the deposit, though I can't see where that is mentioned in Regulation E. In any case, I feel that we should perhaps seek legal action against the payroll company if this doesn't resolve itself properly (or maybe even if it does).
Anybody have any advice on this?