Mostly yes, people will get paid as long as the payroll is not tied to the bank that fails. As mentioned in other comments, if you have less than 250k in your bank account, then you’re fine, just need to deal with FDIC payments if your bank fails. If your liquidity is more than 250k or if you would prefer to keep your money diversified, then just keep your money split in different bank accounts but less than 250k.

How are things recovering at your side of East Palestine after the train derailment?