During the SVB crisis, Rippling was holding $300M in SVB, much of which was actually Rippling customers’ money that had been stored by Rippling for March 15th payroll.
I’m no lawyer, but when Rippling started emailing me “hey, your payroll money is actually with SVB and we need you to contact your bank to try and reverse the payment,” my first thought was “isn’t it your job to make sure my payroll safely reaches my employees?”
I imagine they had to make sure all their customers were made whole and quickly even if SVB money wasn’t able to be recovered, and then decided it would be a good plan to always have more than enough cash to cover the payroll they’re holding for customers.
I’m no lawyer, but when Rippling started emailing me “hey, your payroll money is actually with SVB and we need you to contact your bank to try and reverse the payment,” my first thought was “isn’t it your job to make sure my payroll safely reaches my employees?”
I imagine they had to make sure all their customers were made whole and quickly even if SVB money wasn’t able to be recovered, and then decided it would be a good plan to always have more than enough cash to cover the payroll they’re holding for customers.