The main offices of the Social Development Commission at 1758 W. North Ave. Three months after being laid off, former employees and contractors are waiting to be paid. (NNS file photo by Elliot Hughes)
By Devin Blake and
Edgar Mendez
This story was originally published by Milwaukee Neighborhood News Service, where you can find other stories reporting on fifteen city neighborhoods in Milwaukee. Visit milwaukeenns.org.
Along with her colleagues, Jautone Ferguson was laid off by the Social Development Commission at the end of April and quickly felt the pressure.
Now, three months later, Ferguson still has not been paid and has decided to move out of state.
“Hopefully, we’ll have some updates soon,” she said in an email.
Ferguson is not alone in her dilemma. Both former employees and contractors are still waiting for their money. Here’s what we know:
Background
In late April, the SDC abruptly suspended its operations and laid off its entire staff. The primary reason, according to William Sulton, SDC’s attorney, was the inability to make payroll.
In mid-May, Sulton said that the SDC Board of Commissioners was working hard to fix the problem and trying different avenues to generate money to pay what it owes.
According to Sulton, some tactics have included filing an insurance claim on behalf of former employees, submitting funding requests and pursuing loan opportunities.
“We’re doing everything that we can do to solve a problem that was created by SDC leadership,” said Sulton.
Since May, five board members have resigned.
Sulton did not respond to an NNS request for updates on the pay status for laid-off SDC employees and contractors.
Wage claims filed
Former employees have tried to get their money through another route.
Some have filed claims with the Labor Standards bureau within the Wisconsin Department of Workforce Development, or DWD.
As of July 24, 30 wage claims have been filed against the Social Development Commission, and the Department of Workforce Development “is working actively to address them,” according to an email from a DWD spokesperson.
After all complaints are received and consolidated, the SDC will be asked to respond to these complaints, the email stated.
But this means laid-off employees are still waiting to learn when or if they will be paid.
Sarah Woods, a former youth and family services supervisor at SDC, said the last time SDC paid her was at the end of March.
She believes that she is still owed, without taxes, about $6,000.
Although Woods has found a new job, she still wants her money.
“My retirement money all went to bills,” Woods said.
Contractors also unpaid
Contractors who were owed money by SDC for lead abatement or weatherization work also remain unpaid.
But the back pay process has begun for Jon Yakish, owner of Micro Analytical, Inc., 11521 W. North Ave., which completed asbestos testing for the SDC.
It involves submitting information on work completed to La Casa De Esperanza, one of two agencies that took over SDC’s weatherization and lead abatement work.
“Everything’s being realigned, so we have to jump through a little bit of hoops to verify everything,” Yakish said.
La Casa de Esperanza and Partners for Community Development Inc., the other company that took over SDC’s contracts, do not require the type of asbestos test Yakish’s company provides. This means his firm won’t receive business from these organizations.
More concerning than the delay in payment, Yakish said, was the loss of a longtime business partner in the SDC.
“The loss of a good customer is actually more impactful than the payment,” he said.
Several other contractors who worked with the SDC declined to comment for this story.
What’s next?
The Department of Workforce Development has placed a wage lien on the SDC, amending it as more claims are made, according to the DWD spokesperson.
A wage lien is a legal method by which employees can make a claim on an employer’s assets, prioritizing their back pay before other debts, according to the Wisconsin Legislative Council.
The Department of Workforce Development also said that people can withdraw their claim and pursue back pay in small claims court.
Devin Blake is the criminal justice reporter for the Milwaukee Neighborhood News Service. His position is funded by the Public Welfare Foundation, which plays no role in editorial decisions in the NNS newsroom.