FEDERAL RESERVE holding my money back! What's going on!?!?

As you may be aware, yesterday was Black Friday....which happened to be my payday. It is NOT a federal or banking holiday. I have direct deposit...I am a security officer and work for SOS Security Inc. located out of Parsippany, NJ.

Everyone who takes a paper check got paid but EVERYONE in the whole company who has direct deposit did not. So I called the corporate office (in NJ) and they said because of the holiday we would be paid at midnight(this was yesterday).

I found this to be a big load of crap but I said OK. Well today, still no deposit. My fiancee and I work for the same company, same bank account. No money was deposited. I call my boss this morning and he says he just got off the phone with his boss and corporate is sayng THE FEDERAL RESERVE is holding all direct deposits. They dont have a reason WHY it is being done.

I instantly became enraged. I BLEW UP...no answers as to why they are holding it and no clue WHEN they will release it.

So the question now is....is this it? Is this the beginning of The End for the FED? Is anyone else having this issue??

reply to post by tsi1991awd

Thats silly. Banks do not accept deposits when they are closed. Blame your bank and not the federal reserve or your employer. If the funds aren't in your account Monday then start screaming.

I think your boss is feeding you a line... the FED can't do anything to stop your paycheck... The FDIC has the power to suspend your/companies banks accounts but still that money in insured up $250,000.00

Now here's an idea your company didn't transfer money into the accounts payable so those deposits were never made.

most people don't understand how these merchant accounts work but it's not just a single account but several. payroll comes out of one and they never keep a penny more in there than needed to cover payroll... a protection against fraud. sure checks could be issued, it takes seven days for a check to clear... if in seven days time those checks start to bounce ... then you know why... and its not the FED doing it

Originally posted by sligtlyskeptical
reply to post by tsi1991awd

 

Thats silly. Banks do not accept deposits when they are closed.

are you sure about that? i get my checks (direct deposits) at 1am Thursday night (Friday morning)

i can walk down to an atm at 12:59am and have nothing, one minute later i can pull out all i need.



[edit on 11/28/2009 by Alaskan Man]

This is illegal. If your payday hit's on a holiday or whatever you must be paid early and never late. All you have to do is file a complaint with the board of labor in your state and your employer will be responsible for paying you a full days wages for every day your check is late.

This is your employer's responsibility and it's their fault regardless. They(your employer) will have to sue whoever to get back the extra money you will receive because of this if you file a complaint.

reply to post by DaddyBare


i have to agree with you.

i think its nothing more then a slip up by the company the OP works for.

For those who rec'd paper checks...
Were they able to access their money? Do you know if those checks cleared?
Hope those employee's don't end up over-drawing funds. What a mess.

[edit on 28-11-2009 by LadySkadi]

Yup, same here. Also I was under the impression that the FDIC was broke and had no money to pay any of that so called insured money.

reply to post by sligtlyskeptical


This is it. Lazy employees on many ends don't get small things done and it affects you.

I was just posting what I was told. Again, my payday DID NOT fall on a holiday. Sorry if I wasnt clear. THURSDAY was a holiday. My paydays are every other FRIDAY. The corporate office told me that it was because of the holiday which I thought to be bogus.

I will file a complaint Monday if I am still not paid. My deposit is always posted early morning Friday...wake up, check the account and its there. I will not be run around by these people.

Thanks for clearing up the Federal Reserve deal....maybe he is full of it or maybe he meant something else and said Federal Reserve instead. I heard from a few other employees this happened early last year as well...I did not work for them at that time.

reply to post by LadySkadi


they wouldn't know right away unless the account was flagged... remember it takes seven days to clear. but if I'm right all those checks are going to bounce... its to late to dump funds in there now. banks require the money to be in the account the date the check was written, not 3 or 4 days later... if they did I wouldn't have that black mark on my credit

reply to post by DaddyBare
Of course, that makes sense. Been a really long time since I've dealt with checks (personal or payroll)...


OP - hope you get this settled quickly. What a mess. I'd be ticked off. Good luck!

Originally posted by calstorm
Yup, same here. Also I was under the impression that the FDIC was broke and had no money to pay any of that so called insured money.

The FDIC is tied into the Treasury and has access to an unlimited line of credit... they simply cant run out of money...

reply to post by tsi1991awd


Here's a thought on what to do about your delayed direct deposit.

put in a claim against your employeer (SOS Security per the OP)
say that 3 automatic debit payments were sent from your automatic account...
but because your deposits never made it on time, your bank charged your account $35. per overdraft -> an 'overdraft' caused by the non-received
direct deposit covering your paycheck.

Your company owes you the late paycheck plus the $35X3= $105.
(if nothing more, than for the inconvience...& as a penalty for not remitting your monies earned on the promised date)

reply to post by St Udio


Good point star for you... and I'll add the company would be liable for any late fees and penalties you incur as a result of them being late...

reply to post by curious_soul


I think your mistaken....I have just recently had a dispute with my company regarding payroll. The laws vary from state to state, so a general statement like you made is not true.
In Michigan, the Dept of Labor has no law about how & when you are paid. It is up to you & your employer to agree on the terms. Now, after said agreement, the Dept of Labor can assist you in your contract dispute with the company. And they can fine them for breach of said contract, but that is about all they can do.
It all depends on where you live....California has about the best labor laws protecting the employee. But then again, they are about the most socialistic state in the union. Give protection and take freedom.....but back on topic....I have Direct Deposit and it was late in coming.....but it is there.
Maybe just due to the holiday your office people forgot to push the send button or something as simple as that.....

Peace

hmm interesting, but I had to say I seen it coming!

I live in Washington state...I will look into the board of labor or L and I (Labor and Industries)...they are real good about this type of thing.

Funny that you guys mention the overdraft stuff because we have a few things that are actually on automatic payment for the first of the month and believe me, the company WILL be held liable for overdraft fees if any of them get tacked on.

I don't know what the deal is, and I don't know what is going on with everyone that got paper checks. I heard that this happened last year, as I said. And a week or two after, everyone's check bounced and direct deposit took a couple weeks to come in. Sure could use that money right about now.

I figure a company payroll accountant clerk screw up. My wife gets her pay directly deposited to her bank account on Fridays. In the past, the company she works for has had lazy payroll employees and because Thursdays is when they usually process paychecks, my wife and other employees didn't receive their deposits on Friday, instead receiving them on the following Monday. A great deal of bitching by numerous employees calling and complaining to accounting has resulted in employees getting their checks or deposits of Wednesday, before the holiday.

That shouldnt be the case though....the way it is set up with our company is all times have to be submitted by Monday night. After that, Tuesday the checks and paystubs are printed. Overnighted and the ops manager here has them Wednesday morning. Everything should have been completed by Thursday because it is printed up and all on Tuesday.

Thing is...I never received my paystub. My boss didnt say whether he had it or not. If I dont have it...well....I say something shady is going on then.