Unpaid CDI Head Start Staff Member Feels Abandoned by State and Federal Leaders
By: Marci Manley, KARK 4 News
Updated: January 18, 2013
"No further action will be taken to secure additional money possibly owed to you," she read from the piece of paper that completely changed her outlook.
That letter from the U.S. Department of Labor, leaving Valerie Lewis on her own in the battle for back wages.
"It just doesn't seem to matter to anyone that we didn't get paid," she said.
Lewis is one of 420 Head Start staff across the state owed money by their former employer, Child Development Inc. (CDI) in Russellville.
"We're just regular everyday people on hourly wages trying to make it," she said. "The past year has been a waiting game, and most of us are trying to play catch up from a year ago. The bills we couldn't pay for are big and small."
The Head Start provider fell into financial distress, and failed to pay an estimated $600,000 in payroll, according to a report by the Arkansas Division of Legislative Audit.
"We are going to pay the staff as quickly as possible," Assistant Executive Director Jana Bays told KARK back in January 2012. As of this posting, that hasn't occurred.
And since then, CDI has been dissolved, a federal appointee (Community Development Institute) out of Colorado took over CDI's assets and operations, and folks like Lewis have been updated with monthly memos.
CDI filed to enter into a state of receivership, a situation similar to federal bankruptcy but at a state court level. A government-appointed receiver takes stock of assets and liabilities to wind down the operations. And in those monthly memos, with information provided by the receiver's attorney, CDI's owed employees have been told they would be paid.
"We've been told you know we're getting our money in September -- then it was the end of the year -- and now we're not going to get it at all," Lewis said. "We've been told so many promises, there aren't any promises anymore."
The U.S. Department of Labor's latest letter, informing Lewis and others that they won't be taking the matter any further, saying they could pursue litigation but have decided against it.
"No one cares again. It's basically day one all over again," Lewis said.
We asked the Department of Labor how it came to that decision, in an emailed response a Public Relations spokesperson summed it up in one sentence: Because CDI is out of business.
"Are you kidding me? So, a company can not pay its employees then essentially file bankruptcy and there's nothing we can do?" Lewis said to that response.
According to the DOL letter, "the firm" which it lumps together as both Child Development, Inc. and its federal replacement, Community Development Institute, would not agree to pay back the wages owed.
According to Jim Smith, the attorney for Child Development, Inc.'s receiver, CDI has sold some real estate it owned, but the Office of Head Start has refused to cooperate in discussing liquidating assets like buildings and equipment. Smith told us the Office of Head Start was claiming those assets belonged to them and refused to liquidate to pay the back wages.
"We're to the point where we [CDI's receiver] have to think about filing suit against the Office of Head Start or filing Chapter 7 bankruptcy," Smith said. "We're almost to the point where we're out of options, and the Office of Head Start is just refusing to cooperate."
Lewis said she's had absolutely no help from the Office of Head Start.
"They haven't wanted to talk to us or hear about this since day one," she said.
But state legislators and Congressional members haven't been helpful, either, she said.
"We've contacted so many representatives and senators. Only one, said they would look into it and then nothing came of that," Lewis said. "If we were paid 100,000 salaries would people have cared more?" Lewis asked. "If we were different people would it have mattered more?"
It's a question she can't answer, but she knows one thing for sure.
"I know I didn't get paid, and no one cares," she said. "And no one is helping us."
Lewis had the foresight to join a lawsuit against CDI that was filed back in April 2012.
That lawsuit is still open for those who would like to join, and according to the Department of Labor's letter it's the only option available to those who want to possibly recoup their wages.
"I can't really afford it, a lawyer," Lewis said. "But that's the only option I have to make this right."
We emailed the Office of Head Start representatives for a comment about the accusations leveled against them. At the time of broadcast, they had not responded to our request.
Valerie Lewis isn't the only former employee to feel that way. These are some comments shared with Reporter Marci Manley on Facebook from others who say they are former CDI employees.
Cornelia Hoffmann Reed Evans
After not getting payed and drawing unemployment during the summer, I did get behind my bills. Now I cant even get a loan because my credit score went down the dumpster. I am lucky that I own my house but still have bills to pay. All I wanted was 5000 dollars to pay off some bills.
That letter from the U.S. Department of Labor, leaving Valerie Lewis on her own in the battle for back wages.
"It just doesn't seem to matter to anyone that we didn't get paid," she said.
Lewis is one of 420 Head Start staff across the state owed money by their former employer, Child Development Inc. (CDI) in Russellville.
"We're just regular everyday people on hourly wages trying to make it," she said. "The past year has been a waiting game, and most of us are trying to play catch up from a year ago. The bills we couldn't pay for are big and small."
The Head Start provider fell into financial distress, and failed to pay an estimated $600,000 in payroll, according to a report by the Arkansas Division of Legislative Audit.
"We are going to pay the staff as quickly as possible," Assistant Executive Director Jana Bays told KARK back in January 2012. As of this posting, that hasn't occurred.
And since then, CDI has been dissolved, a federal appointee (Community Development Institute) out of Colorado took over CDI's assets and operations, and folks like Lewis have been updated with monthly memos.
CDI filed to enter into a state of receivership, a situation similar to federal bankruptcy but at a state court level. A government-appointed receiver takes stock of assets and liabilities to wind down the operations. And in those monthly memos, with information provided by the receiver's attorney, CDI's owed employees have been told they would be paid.
"We've been told you know we're getting our money in September -- then it was the end of the year -- and now we're not going to get it at all," Lewis said. "We've been told so many promises, there aren't any promises anymore."
The U.S. Department of Labor's latest letter, informing Lewis and others that they won't be taking the matter any further, saying they could pursue litigation but have decided against it.
"No one cares again. It's basically day one all over again," Lewis said.
We asked the Department of Labor how it came to that decision, in an emailed response a Public Relations spokesperson summed it up in one sentence: Because CDI is out of business.
"Are you kidding me? So, a company can not pay its employees then essentially file bankruptcy and there's nothing we can do?" Lewis said to that response.
According to the DOL letter, "the firm" which it lumps together as both Child Development, Inc. and its federal replacement, Community Development Institute, would not agree to pay back the wages owed.
According to Jim Smith, the attorney for Child Development, Inc.'s receiver, CDI has sold some real estate it owned, but the Office of Head Start has refused to cooperate in discussing liquidating assets like buildings and equipment. Smith told us the Office of Head Start was claiming those assets belonged to them and refused to liquidate to pay the back wages.
"We're to the point where we [CDI's receiver] have to think about filing suit against the Office of Head Start or filing Chapter 7 bankruptcy," Smith said. "We're almost to the point where we're out of options, and the Office of Head Start is just refusing to cooperate."
Lewis said she's had absolutely no help from the Office of Head Start.
"They haven't wanted to talk to us or hear about this since day one," she said.
But state legislators and Congressional members haven't been helpful, either, she said.
"We've contacted so many representatives and senators. Only one, said they would look into it and then nothing came of that," Lewis said. "If we were paid 100,000 salaries would people have cared more?" Lewis asked. "If we were different people would it have mattered more?"
It's a question she can't answer, but she knows one thing for sure.
"I know I didn't get paid, and no one cares," she said. "And no one is helping us."
Lewis had the foresight to join a lawsuit against CDI that was filed back in April 2012.
That lawsuit is still open for those who would like to join, and according to the Department of Labor's letter it's the only option available to those who want to possibly recoup their wages.
"I can't really afford it, a lawyer," Lewis said. "But that's the only option I have to make this right."
We emailed the Office of Head Start representatives for a comment about the accusations leveled against them. At the time of broadcast, they had not responded to our request.
Valerie Lewis isn't the only former employee to feel that way. These are some comments shared with Reporter Marci Manley on Facebook from others who say they are former CDI employees.
Cornelia Hoffmann Reed Evans
After not getting payed and drawing unemployment during the summer, I did get behind my bills. Now I cant even get a loan because my credit score went down the dumpster. I am lucky that I own my house but still have bills to pay. All I wanted was 5000 dollars to pay off some bills.
Angie Thomas Starting
with the missing finances, everything has been a downward spiral for
myself, and the town. I was the Director at the little center in Wickes.
During the month of no checks it took a whole town of people and
churches coming together to bring food and supplies to my employees and
keep us running while we had nothing. Then, with the takeover of the
new company in Feb, that led to a phone call in May (after us closing
for the summer) that our little center in Wickes was amoung a few that
would be permately closed. Now, there is a whole town and 20 children
with nowhere to turn. It is a year later and there is still a couple of
us without jobs, and no credit, which all started with the mismanaged
funds from CDI. It is an embarrasement to say the very least, that
after all the support we got from our town, we had to just shut our
doors without any notice to our children and parents. And after 20 years
are no longer the center of our town.
Ashley Francis It's
bad enough that employees did not get paid, but then after nearly a
year to have the State DOL and the US DOL say that they are not going to
help is really a hugh slap in the face to every employee. There is more
than enough resources within CDI that could be sold off to pay the
employees.This is what was suppost to be happening by the appointed
receiver Robert Winter. Why isn't this happening? This is in print in
the letter dated May 11, 2012 from the Ark. Department of Labor.
Mariah J Hearn-Leonard Not
only did we not recieve a paycheck for the 128+ hours we worked, but
when CDI of Denver took over they held back our pay. CDI Denver took
over full operations on Feb. 11th we didn't recieve our first paycheck
from them until March 7th. All together we did not recieve a full
paycheck from Jan.10th to March 7th. Every time during training we would
ask a question to CDI they would just say...that was the old CDI.
Although, it was the same coordinators. CDI Denver took inventory of all
the centers and put stickers on almost everything worth any value with
their name. Why are they taking in all the assets, of the former CDI,
but none of their debts?!
Headstart teachers don't make much money. Most of us live paycheck to paycheck. I know my family and I did. We lived in the country in a beautiful brick home with a big yard. Now are renting an apartment in town with no yard for my kid to play in. My paycheck was used for gas and food for my family. When we didn't get paid my husband had to use his income for our gas and food. We got behind on our mortgage and thankfully was able to sell our home before it went into foreclosure. When we started back at work, those who had not lost their jobs, they cut our hours 20 hours a month. That was my gas for the month. I didn't want to put my story out because I don't want a pitty party. Many employees had it rougher. My family has a home; it may not be the one we imagined we would spend the rest of our lives in. We made it through, with God's grace and we are truly blessed.
Headstart teachers don't make much money. Most of us live paycheck to paycheck. I know my family and I did. We lived in the country in a beautiful brick home with a big yard. Now are renting an apartment in town with no yard for my kid to play in. My paycheck was used for gas and food for my family. When we didn't get paid my husband had to use his income for our gas and food. We got behind on our mortgage and thankfully was able to sell our home before it went into foreclosure. When we started back at work, those who had not lost their jobs, they cut our hours 20 hours a month. That was my gas for the month. I didn't want to put my story out because I don't want a pitty party. Many employees had it rougher. My family has a home; it may not be the one we imagined we would spend the rest of our lives in. We made it through, with God's grace and we are truly blessed.
Brewster McBarleybeans I
was ABC so I ended up getting paid but I lost my job bc they told us
the day before the "Job Fair" that we had to go to apply for another job
and I couldn't go. I still remember the anger and anxiety of not
knowing what was going to happen but still being expected to smile and
tell parents everything was just fine, that they wouldn't close centers.
So I'm still going to do everything I can.
Christina Cox My paychecks were paying both my husband's and my student loans that came to more than $1000 a month. When I stopped getting paid we thankfully had some money in savings to continue to make our payments. We refinanced and deferred on them now so our payments are lower but our savings is entirely wiped out.
Christina Cox My paychecks were paying both my husband's and my student loans that came to more than $1000 a month. When I stopped getting paid we thankfully had some money in savings to continue to make our payments. We refinanced and deferred on them now so our payments are lower but our savings is entirely wiped out.
Kim Owens A
month of missing wages hurt all of us but were told to keep coming in
with a smile and we would be paid. I am still playing catch up on our
house payments and finding another job is hard during these times.
Raising a family takes every penny we were making.
What really got me as I was made to keep paying for my sons aftercare
even though i wasnt getting paid, that wasnt fair at all. Praying we get
our money that is owed to us soon.
Comments
what this company has done to their employees is disgraceful. They not only took 40 hours away from me each month, but raised insurance from 56 a month to 110 a month. This has taken away from me 400 a month. It is really hard on me to support my grandchildren,whom I am raising and survive on what I bring home $672.00 a month. I would like to see one of them survive on this amount. I feel with all the new equipment they are buying for the centers, they could have a the least paid what they owed the employees first, instead of wasting money on items of no use. Both companies should be investigated throughly especially if this is funded through state and federal money. I would like to correct the amount on insurance it should be 112 a month to 220 a month. plus they had us sign all the paper work on insurance, before telling us they were cutting our hours. In what little defense for them I can say we did get a 6 cent salary increase.
cindy c.
January 19, 2013 at 12:27 pm
what this company has done to their employees is disgraceful. They not only took 40 hours away from me each month, but raised insurance from 56 a month to 110 a month. This has taken away from me 400 a month. It is really hard on me to support my grandchildren,whom I am raising and survive on what I bring home $672.00 a month. I would like to see one of them survive on this amount. I feel with all the new equipment they are buying for the centers, they could have a the least paid what they owed the employees first, instead of wasting money on items of no use. Both companies should be investigated throughly especially if this is funded through state and federal money.
cindy c.
January 19, 2013 at 12:24 pm
