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The article headline is clickbait. They're immediately doing payouts through JP Morgan Chase now; the only delay is because some payouts were in flight when the
by ummonk 4y ago
The article headline is clickbait. They're immediately doing payouts through JP Morgan Chase now; the only delay is because some payouts were in flight when they got stuck in SVB, so if a payout was started via SVB a few days ago and was going to arrive today (because bank transactions aren't instantaneous), the new payouts will take a few days to arrive via JP Morgan Chase.
- 0cf8612b2e1e 4y agoSo people are not receiving their promised money on time? Sounds like the title is accurate. Not everyone has the float to handle an unexpected delay in money. People can also suffer liquidity events.
- ofchnofc 4y ago[dead]
- c22 4y agoGp was adding nuance to the discussion that I found informative. Parent's post offers only a trite reminder with the goal, I suppose, of suppressing said nuance?
- VirusNewbie 4y agoThere’s a huge difference between “oops we had a payroll issue it will be there tomorrow” and “oops lol our money is gone we can’t make payroll, maybe we can get a loan next week”.
- dccoolgai 4y agoIf you were an employee at a typical startup, would you be able to tell the difference? Because leadership is never _that_ transparent with the rank-and-file around these kinds of things. I've seen it happen (thankfully never to me) - over and over again they would say "whoops, it will be there next week". Two months later people - one by one - just stop showing up...
- ummonk 4y ago"I've seen it happen (thankfully never to me) - over and over again they would say "whoops, it will be there next week". Two months later people - one by one - just stop showing up..." That's the kind of delay one expects from reading the headline and why it is clickbait. In actually the payouts are already on their way via JP Morgan Chase and will have arrived by Monday for everyone.
- mosseater 4y agoI dunno. I've seen management be sketchy on transparency before. But when it comes to people's money getting into their hands, I've actually never had management do the "whoops, it will be there next week" thing. It's always been straight forward with what happened and with expectations. Which makes sense, as you said, people won't show up if they don't get there money. It's all circumstantial anyway. I don't think it's fair to call this a case of a "typical startup". Although it's definitely a stereotype of startups.
- more_corn 4y agoDeposits are insured. Payments will resume Monday. But headline is accurate. Payments delayed.
- wk_end 4y ago"Clickbait" doesn't necessarily mean something that's inaccurate - it can (and usually does) mean something that's phrased in a way - often by omission - so as to imply the most sensational possible interpretation of the words' literal meaning.
- hiyer 4y agoI don't know how I would reword it, but the current headline gave me the impression that Rippling had money deposits stuck in the bank and hence couldn't pay people on time.
- deleted 4y ago[deleted]
- ajb 4y agoIs it typical for US companies issue pay on the last possible contractual day? I don't think this is usual practice in the UK - for example my contact specifies that I will be paid by the last day of the month, but typically we get the payment several days earlier, sometimes add much as a week.
- VWWHFSfQ 4y agoPretty much always the 1st and 15th. If either of those fall on a weekend or bank holiday then paid the nearest business day before. That sounds very annoying to not know what day you're getting paid. Especially +/- a whole week.
- 0cf8612b2e1e 4y agoI think getting paid every two weeks (eg every other Friday) is more common. This makes it easier for everyone to plan. Also how you get the payroll situation where every few years, people get an additional pay period [0]. [0] https://www.thebalancemoney.com/paying-employees-in-a-year-with-an-extra-pay-period-3968747 https://www.thebalancemoney.com/paying-employees-in-a-year-w...
- ajb 4y agoOh they let us know in advance. Anyway, being paid early isn't really a problem. If you're planning when outgoings should happen then you just need to plan on the contractual day, not assume that it will get there earlier. I think most larger companies usually pay on that same day but modulo weekends, so the last Thursday of the month or similar.
- wlonkly 4y agoYes, in my experience (US and Canada), if paydays are the 1st and 15th, or every second Thursday, or whatever, then the money appears on precisely that day (adjusting for holidays, weekends, etc. by paying sooner).
- n0us 4y agoSo it’s literally not clickbait and payments were delayed…
- b112 4y agoThe "clickbait" part, is it makes it sound as if Rippling is fiscally unsound, and has to scramble to find capital. A non-clickbait would say what gp said.
- deleted 4y ago[deleted]
- kadoban 4y agoWhat gp said is not a headline, it's a paragraph.
- OJFord 4y agoWe're talking about a 1-2 working day delay, depending on recipient bank. You wouldn't bat an eyelid if it weren't already in the news, I've certainly had pay delayed or incorrect longer, for non-big-news reasons. The title is perhaps yes strictly speaking accurate, but it's still clickbait, it deliberately implies trouble pouring on an already flaming fire, when actually this sounds like an extremely minor symptom - some ash in the hair of the stoker.
- dahdum 4y agoIt’s overblown but pretty relevant news. SVB is the cause, and there could be more before it blows over. 1-2 business day delay for highly paid salaried workers usually isn’t a big deal but it can really turn the screws on lower paid hourly staff like their warehouse workers. They are getting mailed checks, and may then have check clearing delays. They could end up with missed payment fees, overage fees, credit card advance fees, or payday loan fees just trying to feed their family over the weekend. Payroll is always serious. SVB’s mismanagement has real consequences for real people, and reporting those is worthwhile. All that said, Rippling is doing everything they reasonably can and I’m sure they’ll make their workers whole.
- briffle 4y ago> so if a payout was started via SVB a few days ago and was going to arrive today (because bank transactions aren't instantaneous) FedNow instant payments are supposed to go live this spring/summer. Feels like it should have been 10 years ago.
- ummonk 4y agoIt's frustrating that we don't even have one day settlement for most transactions.
- Symbiote 4y agoEven in Britain, which has had a similar instant transfer system for 15 years, it's not unusual for payroll to use the slower system. Though in searching for statistics, I found several payroll processing companies advertising that they would use the Faster Payments (instant) system. The business can keep the money for an additional couple of days, which is presumably an advantage if money is tight.
- jjulius 4y ago>The article headline is clickbait. Oh? Okay, let's see, it starts with... >SF payroll firm Rippling has to delay payouts... And then you said... >The only delay is because... So, two sentences later you've confirmed the headline's accuracy yourself.
- crote 4y agoNo, there is a substantial difference between the two. GP says that Rippling did not delay payouts. In fact, the payouts went out in time - they were delayed in transit, outside of Rippling's control, and Rippling immediately made another payout through a different bank. The headline suggests that there were issues at Rippling, which meant that the payouts did not go out in time. That is a completely different scenario, so the headline would indeed be inaccurate.
- jjulius 4y agoI mean, there are issues at Rippling. They had to switch banks and it caused a delay in getting payments to their clients' employees. That's a fact. Yes, the issue was caused by their bank and not Rippling themselves, but the purpose of the article is to highlight how a separate company is impacted by the SVB fallout. At the end of the day, it's still an issue Rippling has to deal with. I mean, that's why the headline goes on to say, "after SVB collapse". It makes clear that Rippling is suffering because of SVB.
- hartator 4y agoHow it is not Rippling responsibility which bank they use? We are not even arguing responsibilities anyway. There are delays if you are using Rippling which is the title.
- luckylion 4y agoNo. Amazon ships you a product with UPS. UPS notifies Amazon that their driver has eaten the package and they're very sorry. Amazon ships out a new package. The new package, provided the driver doesn't eat it, will arrive delayed. But Amazon didn't delay it, nor do they "have to" delay sending packages. "SF payroll firm Rippling finds some payouts delayed" would be accurate. "Has to delay" implies that they "had to" make a choice to delay payments, e.g. because they don't have the funds available. Yes, it's a subtle change in wording, but it's a very different issue.
- walrus01 4y agoThe employees of the companies which outsourced their payroll operations to Rippling did not receive the ACH credits to their account on the specified date and time. This is not clickbait. Payment did not occur as scheduled. Payments have been delayed.
- c22 4y agoI scrolled to the comments, as I often do, to see if this link was worth clicking. After reading GP's comment I decided not to click. Sounds like clickbait.
- agrippanux 4y agoThis is a pretty big issue in the state of CA. Not paying on time results in a $100 fine per paycheck failure and subsequent infractions are $200 and 25% of what the employee is owed. It's CA Labor Code 210 if anyone is interested in looking it up.
- parker_mountain 4y ago"has to delay payouts" -> "the only delay is because" so there are in fact delayed payouts.
- nighthawk454 4y agoIt’s misleading at least. At best this means _some_ payouts are delayed, but definitely still coming. Given the rest of the news today that’s practically a non-issue.
- parker_mountain 4y agosome payouts is not no payouts. it's an amount of payouts > definitely still coming aka delayed or in summation "payouts are delayed"
- nighthawk454 4y agoNuance and degrees exist. A title of "humans are dying" could _literally_ mean 2+ people died in a local car accident, or all of humanity is dead, or an article about actuarial life expectancy, or an ongoing war/crisis, or an opinion piece about how AI _might_ kill us all. That's a valid "summation" of any of those. Pretty much can't be wrong because it conveys nothing, except clickability. The point is that was not the best way to phrase it given the actual details of the situation and the surrounding context. Technically correct is not always the best kind. Even "SF payroll firm Rippling has to delay payouts by 1 day after Silicon Valley Bank collapse" is infinitely more clear and communicative.
- parker_mountain 4y agoAgain, the simplicity of "payouts are delayed" is quite succinct. I do not understand why you further wish to split hairs, and I no longer have an interest in continuing this conversation.
- nighthawk454 4y ago> Clickbait … is designed to attract attention and to entice users to [engage with] content, being typically deceptive, sensationalized, or otherwise misleading. - Wikipedia This is literally clickbait. Y’all need to chill. It’s sensationalized and misleading relative to the severity of todays events. The title is “technically correct” but it sensationalizes it for sure. Reading that title you expect Rippling to be going under or severely impacted. Which it sounds like so far they’re not (again relatively).
- woah 4y agoIncredible that the boring routine movement of a paycheck is somehow exposed to someone’s questionable bond investments
- DeathArrow 4y ago>They're immediately doing payouts through JP Morgan Chase And is JP Morgan safe from having similar issues with SVB?
- deleted 4y ago[deleted]
- lotsofpulp 4y agoI think it is safe to say JPM has a different relationship with the federal US government than a comparatively tiny bank like SVB.
- wlonkly 4y agoJP Morgan Chase is the largest bank in the United States. If JP Morgan Chase was taken over by the FDIC, it wouldn't be payroll delays that were making the headlines.
- mtillman 4y agoRippling’s EPO service is technically an employer however and D&O doesn’t cover missed payroll. If they miss a payroll due to this, it’ll be on their EPO board to cover the cost no?