San Francisco Teachers Union Files Labor Complaint Over Payroll Issues

The San Francisco Unified School District (SFUSD) is facing significant backlash following the implementation of its new payroll system, which has resulted in widespread errors affecting teachers’ paychecks. This situation has prompted the United Educators of San Francisco to file a formal labor complaint with state authorities, citing ongoing issues that have persisted since the system’s launch on July 1, 2023.

The district’s new payroll software, which replaced a problematic system that cost $34 million, has been plagued by inaccuracies. Reports indicate that at least one hundred teachers have experienced discrepancies in their paychecks, including incorrect deductions for union dues, missing vacation pay, and erroneous compensation for summer school substitutes. The union’s complaint also highlights the absence of a reliable process for managing leave, retirement, or resignations within the new system.

In a letter addressed to district officials, Beatrice Montenegro, senior staff representative for the union, expressed frustration over the lack of training provided to staff responsible for the system’s implementation. “The District had well over a year, with several high-level staff assigned to lead the migration, to now hear that no one got trained, no one understands the system, and that the system cannot actually do the things we need it to do,” she stated.

While district officials acknowledged the challenges associated with launching a new software system, they attempted to reassure both staff and the public that the issues were not unexpected. Phil Kim, president of the school board, emphasized the importance of quickly resolving these payroll discrepancies, noting that over 97 percent of paychecks issued thus far have been accurate. “We owe it to all of our staff to ensure their pay is whole and on time,” he remarked.

The new payroll system, named Frontline, comes at a cost of $20 million, with an additional annual expense of $2 million for ongoing maintenance. District officials have committed to providing regular updates on the system’s status, acknowledging issues such as incorrect leave balances and tax calculations.

Previously, the SFUSD utilized a bespoke system called EMPower, which was launched after a two-year effort to rectify numerous problems, including payroll errors and issues related to health and retirement benefits. The initial contract for EMPower was $9.5 million, but costs escalated to $35 million before it was ultimately abandoned last month. The fallout from the payroll failures led to a state of emergency being declared in the district in November 2022, resulting in the establishment of a 60-person command center dedicated to resolving these issues.

As the district continues to navigate the complexities of its new payroll system, teachers and staff remain hopeful for swift resolutions to the ongoing problems that have disrupted their livelihoods. The situation underscores the challenges educational institutions face in managing large-scale software transitions and the critical importance of effective training and implementation strategies.