The warning signs were all there since January. There needs to be some incentive for the employer not to use an unsound bank because if there aren't you end up in a situation like this, where the government needs to step in again and bail out depositors because the alternative would be worse.
Im not sure why anyone would want to report their employer for a minor delay when a bank is folding. Hopefully the DOL would ignore that.
It is basically the same as reporting your employer because for a late check because the mailman got shot on your doorstep.
I feel like it also does a disservice to people who have real late paycheck abuses.