University of Kentucky says it continues to make progress after glitches delay paychecks

syoungman@herald-leader.comMarch 1, 2014 

University of Kentucky officials were working over the weekend to correct a glitch that resulted in 16,000 employees not being paid immediately Friday.

Eric Monday, executive vice president for finance and administration, said Saturday that UK estimated that 70 percent of the effected employees would be paid by noon Saturday and the rest would be paid by Monday evening at the latest.

In a letter to the employees from Monday provided by the university, the school said it will "ensure that any overdrafts, non-sufficient charges and late fees will be covered."

A form for employees who need to request a reimbursement is available at http://bit.ly/1cjjitM.

UK said it will begin processing requests Monday.

For help completing the form, employees can call UK accounts payable at (859) 257-5440 or the UK HealthCcre payroll office at (859) 323-5721.

UK also said on Uky.edu, where updates were being provided Friday and Saturday, that PNC and Kentucky Bank branches will cash personal checks for up to $200, providing links to the banks' hours of operation.

Monday said that UK is planning to open a payroll call center from 7 a.m. to 7 p.m. Monday, but that would depend on the weather as the forecast is calling for more wintry conditions. The number for the call center is (859) 257-9254.

UK said in an employee update Saturday afternoon that, despite employees' concerns about a possible negative impact on their credit scores "that should not be an issue in the vast majority of cases."

"Companies may waive any late payment or unpaid/return check fees assessed," Monday said in the update. "If not, the University of Kentucky will reimburse employees for any such fees assessed.

"In most instances, a payment will not be reported to a credit-reporting agency unless it is unpaid for more than 30 days."

UK provided a link to a letter from PNC that could be presented to creditors if there is such a problem. On Friday, Pittsburgh-based PNC said "human error" caused the delay.

"PNC's risk management team identified an issue with the payroll file received from UK and delayed its processing out of caution but did not do what was necessary to ensure it reached University of Kentucky employee accounts on time," said Marcey Zwiebel of Pittsburgh-based PNC. "What happened here was human error, and we are addressing the issue to make sure nothing like this happens again.

"We recognize how important paychecks are to people, and we sincerely apologize to the entire UK community for the delay. We regret any inconvenience. We are committed to making funds available as soon as possible."

UK is Lexington's largest employer.

"Thanks again for your patience as we work through these issues," Monday said. "We regret any inconvenience these issues have posed. Please know we are working quickly to resolve any problems associated with this event. We will be back in touch with you with further communication throughout the weekend."

Herald-Leader staff writer Karla Ward contributed to this report.

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