Thousands of startups were left scrambling to meet payroll when Silicon Valley Bank imploded earlier this month, locking clients out of their accounts. Although the Federal Deposit Insurance Commission soon took over the bank, announcing it would protect all depositors, the initial uncertainty had businesses panicking. After all, fulfilling payroll obligations is the bare minimum in the employer-employee relationship.
Failing to pay employees “is the highest breach you can have of employers,” says Eynat Guez, CEO of payroll software company Papaya Global. “This is the most important liability and the heart of the relationship. I can tell you, ‘We have amazing employee benefits, great brands, and so on.’ In reality, if I don't pay you correctly and on time, you're not staying regardless of the job.”
