Many workers complained about delayed payments that wouldn’t arrive until after the long holiday weekend due to a payroll error at Boston City Hall.
In a Thursday email to workers who were anticipating payment this week, the city’s finance and human resources departments acknowledged the pervasive payment problem and stated that, because payday falls on the Fourth of July holiday, the availability of funds may be affected by the processing schedules of various banks.
You can rest assured that you will be paid. In response to a Herald query, Mayor Michelle Wu’s office revealed a memo that Chief Financial Officer Ashley Groffenberger and Chief People Officer Alex Lawrence issued to staff.
Several municipal employees who talked to the Herald anonymously said that because the official message stated that employee checks were dated July 4, several banks chose not to deliver the monies until the next working day, which is Monday. They did this out of concern for the reaction of their employer.
“Unfortunately,” a Boston firefighter told the Herald, “I live paycheck to paycheck.” For my family, this is one of the most important festivals of the year. I am now unable to spend this weekend with my family due to the city’s failing.
After twenty years of service, the firefighter discovered that his bank was planning to release his paycheck funds on Monday. He claimed that during his tenure at the department, there has never been a problem with late payment because of a holiday.
A Boston Public Schools employee reported Thursday morning that she had not received her salary and that her daughter, a lifeguard at the Boston Center for Youth and Families, and her husband, a firefighter, had also not received theirs.
The BPS employee stated that their checks usually clear by Thursday during holiday weekends. When she saw that payment was really planned for Monday, she contacted the city to inquire about the reason for the delay.
The BPS employee stated, “I made arrangements to pay bills on time.” I am unable to cancel them because I have already put them up. We will now be overdrawn because I arranged for bills to be sent out today. It’s really stressful.
She went on to say that many people are under stress. It’s a holiday weekend, and you usually spend more money on lengthy vacation weekends. People made plans and other arrangements, but I’m sure they’ll be canceled or forced to use credit cards, which is unfair.
In a memo distributed to staff later that day, the city stated that it had been in contact with nearby banks in an attempt to address the processing delays.
Several local banks had informed the city that they were permitting their clients to cash their checks on Thursday, prior to Friday’s holiday, for those employees who choose to do so.
In a memo received around 2:30 p.m., Groffenberger and Lawrence also stated that Citizens Bank was permitting non-customers to cash their City Hall paychecks at their branches on Thursday, with the majority of banks scheduled to close shortly after.
According to the two city department heads, workers who receive their pay by direct deposit are more subject to the processing rules of their bank, which dictate when money is available in their accounts.
According to the document, a number of banks are processing direct deposits before July 4th, including Citizens, the City of Boston Credit Union, TD Bank, and Metro Credit Union. We are requesting early processing from our local banking partners.
Some employees told the Herald that their banks had issued money from their paychecks just moments earlier by 4 p.m.
In both cases, the staff members reported banking with the Boston Firefighters Credit Union, including the 20-year veteran and BPS employee who is married to a fireman.
According to Sam Dillon, president of the city’s fire union, Boston Firefighters Local 718, the credit union decided later in the day to release monies earlier than originally planned, which was set for next Monday.
Dillon told the Herald that the Boston Fire Credit Union took the initiative and made the necessary corrections and made the monies available for our members who bank there. The Boston Fire Credit Union is commended by Local 718 for taking the initiative and working all day to ensure that our members have access to their wages.
Dillon had admitted earlier in the day that his union membership was being impacted by late payments.
Around 1:30 p.m., Dillon stated that every worker and every family should be able to count on timely wage payments. Our men and their families don’t deserve this extra worry as they prepare to enjoy the Fourth of July vacation.
Some employees are still not receiving their paychecks this week, even though the payment issue was fixed for others.
According to a Boston Center for Youth and Families employee who uses Capital One for banking, their check might clear on Monday, which would result in a late rent payment.
The BCYF employee told the Herald, “I don’t understand why some people got paid today and others didn’t.” Life doesn’t end when you leave the office. We need our employment to pay for our survival because we have lives.
Erin Murphy, a Boston City Councilor, told the Herald that the problem is pervasive and that it’s difficult to determine how many employees have been impacted because they utilize so many different banks for direct deposit.
She claimed that many workers who had anticipated receiving their paychecks on Thursday awoke to empty bank accounts.
Murphy stated that many of our city’s employees actually live paycheck to paycheck. Autopay is in place for their bills. There will now be late fees for some. Some will have rent arrears. And a lot of people spent today frantically trying to figure out how they would make it through the weekend without their earnings.
Murphy stated that the error stems from the city leadership’s inability to prepare ahead of time and safeguard our employees against this entirely predictable issue.
The payroll incident was described by Councilor Ed Flynn as a significant embarrassment to the City of Boston.
Flynn stated that it must never occur again and that if it does, we must demand the immediate resignation of all those responsible for this poor management.
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On the subject, Flynn and Murphy requested an urgent Council hearing order.
Councilor Enrique Pepn, a former Wu administration official, made more subdued comments.
Pepn told the Herald, “I hope that employees get paid sooner rather than later to ensure that they can make ends meet.”
Wu’s main rival for mayor, Josh Kraft, was more scathing in his critique.
He said that failing to pay our employees on time is an intolerable management failure, particularly for those who are struggling to make ends meet because of Boston’s exorbitant cost of living.
Julia Leja, a spokesman for the Wu campaign, stated that the mayor is appreciative of all the city employees and financial partners who acted swiftly to resolve this holiday payday issue.
To arrange early processing for city employees, she and her staff personally spoke with dozens of banks and credit unions throughout the course of the day, according to Leja. She is grateful that so many partners joined together to make this happen because she understands how important it is for city workers to receive their hard-earned wages immediately. She hopes that everyone has a joyful and safe Independence Day.
