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Some state employees not paid yet

Banking error means weekly pay coming Tuesday

Posted: May 12, 2014 - 1:10pm  |  Updated: May 13, 2014 - 12:03am

A glitch in a computer system resulted in about 15,000 state workers not getting paid as scheduled this week.

State officials discovered the problem Monday morning, and have since ensured that the employees will be paid by 9 a.m. Tuesday.

“We apologize for the inconvenience this causes our employees and we are disappointed that our new direct deposit vendor, US Bank, was unable to perform their contracted service,” Department of Administration Commissioner Curtis W. Thayer said in a news release.

The hiccup is being described as a “processing error” by US Bank’s direct deposit system. This was the first payment handled by US Bank after the state recently switched from using Wells Fargo in the past, Andy Mills, special assistant in the DOA.

“The State contracted with US Bank to deliver on a service that thousands of employees rely on,” Thayer said. “US Bank has assured the State that measures will be put into place to ensure this never happens again.”

Because it was the bank’s fault, any state workers who incur bank fees as a result of their pay not being deposited on time will be repaid by the bank, Mills said.

• Contact reporter Matt Woolbright at 523-2243 or at matthew.woolbright@juneauempire.com. Follow him on Twitter at https://twitter.com/reportermatt.

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Karl Ashenbrenner
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Karl Ashenbrenner 05/12/14 - 09:32 pm
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US Bank

must have been the lowest bidder....

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