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Rhode Island Payroll Errors Spark Class Action Lawsuit
19 May
Summary
- A class action lawsuit alleges Workday system errors caused widespread payroll issues.
- The lawsuit seeks damages for unpaid wages, overtime, and attorney fees.
- Over 20,000 state employees may be included in the proposed class action.
Four Rhode Island state employees have filed a class action lawsuit against the state over widespread payroll errors stemming from the December rollout of a new Workday-powered Enterprise Resource Planning (ERP) system. The lawsuit claims the system has caused late and missing paychecks, inaccurate wage rates, incorrect deductions, and unauthorized withholdings.
The plaintiffs are seeking unpaid overtime, compensatory damages, liquidated damages, attorney fees, and 12% interest. While only four employees are named, the suit estimates the class could include over 20,000 individuals, many of whom previously received incorrect tax forms.
The state has acknowledged the payroll issues, stating it is diligently working to stabilize the system and address discrepancies. However, the lawsuit points to previous similar Workday implementations resulting in persistent pay problems for public employees.
Recent payroll mishaps include mislabeled tax forms, union dues not being withheld from thousands of paychecks, and errors in Health Savings Account and 403(b) contribution calculations. These ongoing issues have led to significant financial and personal hardship for state workers.
