A payroll company in upstate New York suddenly shuttered in September, leaving some home care companies and their staff scrambling, according to an article from Spectrum News.
The company, MyPayrollHR, had 4,000 clients, among them home care company Visiting Angels.
When the payroll company shut down, a financial services company that worked with MyPayrollHR started to withdraw paychecks, in some cases even withdrawing money from employee bank accounts twice, according to NBC News.
Managers from Visiting Angels started going to employees’ homes to give them paper checks and groceries, owner Robert Croan told Times Union.
Home care companies in Texas and Southern California were also impacted.
The owner of one Texas home care franchise told Times Union he was working to set up a line of credit to cover the pay of 75 employees who had funds withdrawn.
The FBI launched an investigation into the matter. The U.S. Department of Labor and New York state labor officials are also investigating, according to NBC News.