PayrollOrg’s Government Relations Task Force (GRTF) continues to engage with federal government agencies and other partners regarding bank failures and their effect on the timely processing and distribution of payroll.
PayrollOrg recently sent a letter to the U.S. Department of Labor (DOL) on wage and hour/pay period requirements and the impact of bank failures. PayrollOrg previously engaged with the Federal Deposit Insurance Corporation (FDIC) and the House Financial Services Committee (HFSC) on the bank failure issues.
Request of the DOL
In its letter to the DOL, PayrollOrg asked for guidance on what to do when bank failures cause delays in payments to employees. PayrollOrg also requested a “temporary relief process for certain wage and hour requirements during the time the FDIC assumes control of bank assets.”
PayrollOrg understands that many wage and hour requirements fall under state and local jurisdictions, which may have different requirements for paying workers. The request of the DOL may require more analysis on whether one national standard can be created.
PayrollOrg also made clear that its request to the DOL for temporary relief from wage and hour requirements in no way impacts the payment of fair and full wages to employees, including following minimum wage and overtime rules.
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Adam Prinzo is the Assistant Manager of Government Relations at PayrollOrg.