Human Resources News & Insights

Employees quits, gets paycheck for an extra 8 weeks

With staffing budgets shrinking, here’s a way for companies to save: Stop paying employees who no longer work for you. Sounds like an obvious strategy, but here’s one employer who could’ve used the advice.

Due to a payroll processing error, a bus monitor in Nashville, TN, quit her job yet still received a paycheck for an additional eight weeks.

When asked how it could happen, a spokeswoman for the school district simply said, “It didn’t get communicated to the person in payroll.”

Eventually, someone noticed the error, MSNBC reports. No word on how much money was paid, or if the district will try to recover it.

The worst part: School officials say the district may need to cut up to $15 million from next year’s budget. So, like at most employers these days, every penny counts.

This news comes less than a week after it was a reported a bus driver in the district was caught stealing more than $9,000 worth of gas for her personal car.

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  • Mel

    I guess old fashioned honesty is out of fashion for some employees. It seems odd the person that quit kept completely quiet about the windfall. I am sure they will try to recover it and prosecute if it isn’t returned.

  • Deb

    I’m not sure I like this article stating that this was a “payroll processing error”. How is it that payroll made an error if they where never told the person quit? I’m pretty sure the “error” is that of the employees manager or HR.

    This isn’t anything new. I’ve worked in the payroll department for companies as small as 200 and as large as 200,000 and this is the most common mistake made. When it all comes down to it, most managers just don’t know what to do when someone quits. They think if they have the computer access shut off all the rest just magically happens.