Wisconsin DOJ Sues SDC for Unpaid Wages Amid Agency Turmoil
The Wisconsin Department of Justice (DOJ) has initiated a lawsuit against the Social Development Commission (SDC) seeking back pay for former employees totaling $359,609.73, with penalties potentially doubling that amount. This action follows SDC’s closure in April 2024, which left employees unpaid. Former SDC employee Sarah Woods emphasized, “These are not small payments.”
As the lawsuit unfolds, three Milwaukee legislators are urging SDC to voluntarily relinquish its community action agency status, a move they believe could redirect $1.182 million in block grant funds toward crucial services like food security and workforce development. They warned that these funds must be utilized by September 30, 2025, or they would be lost.
In response, SDC attorney William Sulton indicated plans to file a complaint against the Wisconsin Department of Children and Families (DCF), attributing reimbursement challenges to documentation disputes. Legislators expressed concern about SDC’s operational instability affecting aid delivery, while Sulton highlighted a lack of alternative agencies to assume these responsibilities. As the situation evolves, the focus remains on ensuring that essential services reach the community.
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