MyPayrollHR Lawsuit Investigation

MyPayrollHR, a payroll processing firm, suddenly collapsed in the first week of September 2019. Following this closure, many employees had multiple paychecks worth of funds withdrawn from their accounts. According to KrebsonSecurity, this left countless employees with their bank accounts “dangerously in the red,” and “nearly $35 million worth of payroll and tax payments in legal limbo.”

ABC News10 reported that some employees have even had money withdrawn as much as three times since the initial scandal broke. This, according to Timesunion, has left many people with negative balances in their bank accounts, and some unable to pay their rent or bills. One company owner explained

It sounds like something you would hear in a movie. You wouldn’t think it would strike so close to home.

KrebsonSecurity further explained that nearly 4,000 MyPayrollHR clients received an “unceremonious” message amid the sudden closure of the company. The message stated

Dear Client: We regret to inform you that due to unforeseen circumstances, we are no longer able to process any further payroll transactions. Please find alternative methods for processing your payrolls. For any payroll batches submitted during this week, including any payroll reversals from last week, please be prepared to find an alternative method to pay employees. We are working to release any funds that are in transit as a result of this matter. We will provide you with updates via this medium as we receive them.

According to News 10, employers who once used MyPayrollHR are now struggling to find ways to pay their employees. If you are an employer who was affected by the MyPayrollHR closure, you may have options for legal recourse. Contact our firm to learn more about your options.