Employees at Bergdorf Goodman, a high-end department store in Manhattan, have raised concerns over significant and unexplained deductions from their paychecks. Several workers reported that, starting January 1, up to 75% of their earnings have been withheld, affecting nearly two dozen staff members. This issue coincided with Saks Global filing for Chapter 11 bankruptcy protection on January 13.
Management has assured employees that they are investigating the payroll discrepancies and are working towards a resolution. However, a representative for Saks Global stated there were no systemic errors regarding payroll tax or benefit deductions since the year began, attributing the fluctuations to standard annual resets for Social Security contributions and other withholdings.
Despite these claims, employees are struggling to reconcile the drastic reduction in their pay. Many have indicated that the net earnings they receive are insufficient to cover basic living expenses. Workers reported some receiving only $400 per week while grappling with unpaid rents and basic necessities.
Concerns have also been raised regarding sales at the store, with employees noting a significant decline in commission income as the store has not received new merchandise shipments since last year. Workers shared instances of discrepancies in pay among colleagues, with some who sold the same amount of products receiving vastly different paychecks.
Saks has denied that unauthorized users have accessed employee data or payroll systems. Nonetheless, employees remain frustrated over the lack of transparency and answers concerning their financial situation.
Why this story matters:
- Highlights financial challenges facing retail employees amidst corporate restructuring.
Key takeaway:
- Bergdorf Goodman workers are experiencing unexplained payroll deductions significantly impacting their livelihoods.
Opposing viewpoint:
- Saks Global maintains there are no systemic payroll errors and has attributed issues to standard annual resets in payroll deductions.
