Hackensack Meridian Health payroll glitch takes a toll on workers

April 27-- Apr. 27--Hackensack Meridian Health workers on Friday received errors in their paychecks for the second consecutive pay period, leaving them frustrated and worried about keeping up with their bills.

The payroll glitch is forcing at least some workers to scale back plans until they get made whole. The company employs 34,100 workers, but it isn't clear how many have been impacted.

"The mortgage company has told me basically that if I can't provide to them proof of my income, I can't qualify for the mortgage," said Alexis Iradi, 26, a nurse at Jersey Shore University Medical Center in Neptune. She is scheduled to close on a home in Toms River on May 20.

Edison-based Hackensack Meridian is one of the state's biggest employers, operating a health care system that includes 16 hospitals. Among them: Hackensack University Medical Center in Hackensack, Jersey Shore University Medical Center in Neptune and JFK Medical Center in Edison.

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The company has been scrambling for the better part of a month to resolve technical problems with what officials said is Oracle's PeopleSoft application that manages employees' pay and benefits.

The mistakes have shed light on a workforce that is living paycheck to paycheck -- and the financial and emotional strain it can cause when they aren't paid what they are owed.

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Sharlene Grant, a nursing assistant at The Harborage, a nursing home next to Palisades Medical Center in North Bergen, said she and her co-workers have received checks with too much withheld for health insurance and too little paid for overtime.

"The manager is telling us they are aware of the problem and are working to get the problem rectified as soon as possible, but as soon as possible is not good enough for us," Grant, 50, of Bayonne, said.

Meghan Davis, a nurse at Jersey Shore University Medical Center, is on maternity leave; her son was born April 10. But her paycheck on Friday was for 19 cents, and the money left in her bank account is dwindling.

"I'm beyond frustrated at this point," Davis, 33, of Neptune, said. "I don't know what to do anymore."

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A Hackensack Meridian spokeswoman said the company is consolidating several payroll systems into one to keep track of payroll, scheduling, timekeeping and absence management, but the transition hasn't been smooth.

Nancy Radwin, the spokeswoman, said PeopleSoft is considered the gold standard technology for finance and human resources, and it will eventually lead to a smoother payroll process.

"Our team continues to work around the clock to rectify issues as quickly as possible -- team member by team member," Radwin said.

"We are asking everyone to carefully review their statements and report any discrepancies or concerns. We are prepared to run another off-cycle payroll as needed. Our goal is to make sure every team member is made whole and ensuring any expenses or fees incurred as a result of incomplete funds are addressed."

She didn't provide a timetable for when the system would be fixed.

Consumer advocates said workers faced with the prospect of bouncing a check to their credit card company, mortgage company, landlord or auto lender should reach out to their creditors quickly to let them know about the problem.

Workers who get hit with an overdraft fee should contact their bank. And they should ask their employer for a letter to give to their bank that helps explain the situation.

"Anybody that you owe money to, call them right away and say, 'Here is my situation. I am trying to be responsible about it. It is going to be a setback for me,'" Paula Mirk, director of financial coaching at New Jersey Citizen Action, said.

"Even big credit card companies, most of the time if you give them a heads up, they are going to be willing to work with you," she said. "If you just don't do anything, they are going to be less willing to help you."

Alexis Iradi did just that. She contacted her mortgage lender, Santander Bank, which seemed to be aware of the situation.

But she is nervous. She had been searching for her first home for more than a year before finally finding one that didn't require too much work.

But as she neared the finish line, she stumbled. Iradi looked at her paycheck on April 12 and saw it was $400 short. On Friday, it came up short again.

"They're working with me and waiting for my paycheck," Iradi said. "Still, how long can they wait?"

Michael L. Diamond has been writing about the New Jersey economy for 20 years. He can be reached at @mdiamondapp; 732-643-4038; and [email protected].

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