AUSTIN, Texas — The City of Austin overpaid 675 employees by about $1.4 million this month due to a payroll system error and is now working to recover the funds.
Officials said the issue stemmed from a malfunction in the Workday system, triggered when a nonrequired data field was left blank during routine updates. The glitch caused the system to override existing data and miscalculate pay, with some employees receiving nearly double their normal paycheck.
City spokesperson Jenny LaCoste-Caputo said affected employees were notified ahead of the March 13 paychecks and that the issue has since been resolved for the current pay period. The city is now working on a repayment plan that would allow employees to return the excess funds over time.
The incident comes as the city faces increased scrutiny over its financial management, following recent audits that identified gaps in contract oversight and other spending practices.
