AG Nessel Issues Consumer Alert to Provide Protective Measures for Workers and Businesses from Shuttered Payroll Companies

Contact: Kelly Rossman-McKinney 517-335-7666
Agency: Attorney General

September 26, 2019

LANSING – Following the abrupt closure of MyPayrollHR that left workers in Michigan and other states without paychecks and overdrafted accounts, Michigan Attorney General Dana Nessel today issued a consumer alert outlining the steps employees and employers should take to protect themselves.

“It appears MyPayrollHR may have withdrawn money that had been already deposited into workers’ accounts,” Nessel said. “As our Payroll Fraud Enforcement Unit determines if any laws were violated by the company, I want to remind businesses that use payroll companies that they are responsible for paying their employees, even if their payroll company abruptly closes.”

Nessel added it is currently unknown how many Michigan businesses and workers were affected by the company’s closure.

The Department’s consumer alert recommends businesses and employees immediately notify their banks or credit unions that withdrawals from the closed company are not authorized. The alert also outlines several other precautionary steps businesses and employees should consider to protect their business and their paychecks. The full consumer alert can be read here.

In addition to the alert, Nessel urged anyone affected by MyPayrollHR’s abrupt closure to file a complaint with the Department’s Payroll Fraud Enforcement Unit. Complaints may be filed online, by email or by phone at 833-221-1099.

###