Payroll Company Closure Leaves Workers Without Pay

Tens of thousands of employees across the United States didn’t get paid last week.

MyPayrollHR, a Clifton Park, New York-based payroll-processing service for employers, shut down suddenly without transferring wages to its clients’ employees. Instead of their weekly or monthly pay, workers received a terse note via email: “We regret to inform you that due to unforeseen circumstances, we are no longer able to process any further transactions.”

It turns out that MyPayrollHR suddenly ceased operation.

Companies that used MyPayrollHR services agree that there was no warning of the company’s closure. What happened to clients’ money is unknown.

The payroll company closed right before the weekend, so clients and employees were unable to get in touch with MyPayrollHR or its parent company, ValueWise, immediately. Businesses affected by the shutdown scrambled to provide paychecks to their employees over the weekend. The FBI, the governor of New York, and the attorney general’s office have all been notified.

“These businesses and workers deserve answers, and I am calling on the Department of Financial Services to investigate this irresponsible company's actions,” said Gov. Andrew Cuomo. “This is not how we do business in New York, and we will not allow these bad actors to take money away from the hard-working people in this state." Cuomo urged affected employees to file a complaint by calling the Department of Financial Services or directly through the department’s website.

A “Victims of MyPayRollHR” Facebook group is the epicenter of discussions among affected workers. The group quickly became an advice center of sorts, and a clearinghouse for information on which MyPayrollHR clients and their employees were affected.

Experts remind employers that when a payroll processor fails to provide service, it is the business owner’s responsibility to ensure workers get paid.