A Wayne County, Michigan employee became an accidental millionaire when a payroll error deposited $1.6 million into her single paycheck, exposing critical flaws in the local government's financial oversight systems.
The massive overpayment occurred in late May when a supervisor updating payroll information accidentally entered the employee’s ID number instead of her hourly rate while processing a raise, according to WXYZ Detroit. The 20-year county veteran immediately reported the error the next day and began the process of returning the seven-figure sum.
County Executive Warren Evans called the mistake inexcusable, leading to the termination of two employees and suspension of a third. The incident highlights broader systemic problems with government payroll systems, particularly following major software implementations that lack adequate safeguards and employee training.
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“No excuses for it, that kind of thing can’t happen,” Evans told WXYZ. “Almost did.”
The magnitude of the mistake should have triggered multiple automated alerts within Wayne County’s Oracle-based payroll system, according to Evans. “I can tell you that there are multiple fail safes, theoretically, built into the system. And at least three of those didn’t work.”
The employee who received the windfall, described by sources as having over two decades of county service, demonstrated integrity by immediately alerting her supervisor to the discrepancy. Her quick action prevented what could have become a complex legal and financial recovery process.
The $1.6 million overpayment represents the latest in a series of payroll disruptions since Wayne County upgraded its systems last year, according to WXYZ. The county switched to Oracle’s enterprise resource planning software following years of delays and millions in implementation costs.
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In August, approximately 400 Wayne County Sheriff’s employees experienced the opposite problem. Severe underpayments that left some receiving less than $1 in their paychecks. Those errors were also attributed to human mistakes and system unfamiliarity.
County employees report ongoing difficulties with the new platform, citing insufficient training and persistent user confusion as contributing factors to recurring errors.
“Anytime you go through a big transition from Oracles and [enterprise resource planning systems], those things happen in any big organization. But it doesn’t mean they should,” Evans acknowledged.
Under federal and state employment law, employers maintain the right to recover wage overpayments regardless of fault, according to Payroll Partners, a payroll processing company. However, recovery methods must comply with minimum wage protections and proper notification procedures.
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The Oracle system upgrade, which took years to implement and exceeded initial budget projections, WXYZ reported, was intended to modernize Wayne County’s financial operations and reduce human error.
The case underscores the critical importance of validation controls in payroll systems, particularly during software transitions when employee familiarity is low and error rates typically increase.
For Wayne County residents, the incident raises questions about fiscal oversight and internal controls protecting taxpayer funds. While the employee’s honesty prevented financial loss, the failure of multiple safeguards suggests more vulnerabilities in county operations that extend beyond payroll processing.
The investigation continues as county officials work to rebuild confidence in their financial management systems and prevent future breakdowns in oversight.
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