Just want to bring this up so people aren't paranoid when such things happens. They DO happen, especially now that so many startups use "cool" and "hip" startup payroll providers that also make mistakes.
When the company is innocent, its best if the employer shows the employees the cause of the failure and be really, really oversharing so us very angry workers aren't inclined to riot.
1) at this late date, I get the feeling because the town was small enough to call around and make sure people banking at other banks didn't overdraft either instead of covering them money-wise after the fact.
It was in the 90's and there were "personal adjustments" that occurred later on.
1) cannot drive to your bank because then the check would bounce and really do some extra fun damage - plus this was before direct deposit was available at that company