The Social Development Commission says it can finally pay some of its former employees — thanks to a $47,000 contribution from Unite WI.
The contribution should be enough for SDC to cover wages for the 19 unpaid former employees from the April 15 pay day, said William Sulton, the agency's attorney.
Another 85 former employees still have not received their April 30 paycheck. The financially beleaguered anti-poverty agency closed its doors at the end of April and still owes funds to contractors, too, including the City of Milwaukee Water Works.
"The board chair (Barbara Toles) has made it very clear that our first priority is to ensure that all of the employees are paid and that has included soliciting donations, which have been fruitful," Sulton said in an interview with the Milwaukee Journal Sentinel.
The Department of Workforce Development's June records show 21 former employees have filed complaints with it for unpaid wages.
In response to questions from the Journal Sentinel, the Department of Workforce Development would not confirm SDC provided $47,000 for unpaid wages.
Instead, an agency spokesperson wrote in an email: "Some payments from SDC have been received and are being matched to the associated complainant."
Milwaukee Neighborhood News Service, which first reported on Unite WI's contribution to SDC , cited a DWD assistant deputy secretary who said the state agency had received checks from SDC for six employees last week.
Nonprofit known for training health workers provides SDC with funding
Unite WI, a nonprofit that trains health workers, partnered with SDC for health literacy, said Bria Grant, Unite WI executive director.
The $47,000 is not a donation, she said. It comes from Unite WI's community emergency response plan.
"The bank has an emergency response plan," Grant said. "Wall Street has an emergency response plan. Why don't we feel like it's important to provide support for agencies that are addressing poverty when they fall short?"
In addition to two unpaid checks, some former SDC employees say they are also owed a payout for unused paid-time-off days. The SDC board is discussing this possibility, Sulton said.
"SDC does not have a PTO payout policy, but I do know that employees are upset about that," Sulton said.
SDC hopes to pay its remaining employees through its insurance's Employment Practices Liability policy, he said.
The Social Development Foundation, SDC's nonprofit arm, has received donations since April, said Sulton, who was unable to provide an exact amount for those donations on Monday.
The foundation is governed by a separate board. The foundation's treasurer, Phyllis Clark, attended the SDC board meeting on Aug. 8 virtually and joined the board's closed session.
Attorney says SDC remains behind on 'many' bills
SDC owes money to more than its former employees.
SDC Properties INC, the real estate arm of SDC, owes $10,225 to the City of Milwaukee's Water Works, according to recently released city records.
"I would say it doesn't surprise me, but I'm not aware of those bills specifically," Sulton said.
The water bills stem from two SDC properties, one at 6850 N. Teutonia Ave. and another 1730 W. North Ave.
The agency's board decided to consolidate its five properties to the properties on Teutonia and North avenues, Sulton said.
SDC remains paid up on those two properties' mortgages, Sulton said.
"There are many outstanding bills," Sulton said.
Gina Lee Castro is a Public Investigator for the Journal Sentinel. She can be reached at gcastro@gannett.com .
This article originally appeared on Milwaukee Journal Sentinel: An anti-poverty agency abruptly shut down. A local nonprofit has stepped in to help pay some workers
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