Suit Alleges Mo. Charity Failed to Pay Some Wages and Taxes for Staff

More than 70 ex-employees of a major St. Louis social-service charity that closed its doors earlier this year have filed suit against the organization over alleged unpaid wages, taxes, and health premiums, the St. Louis Post-Dispatch writes.

The workers say the Human Development Corporation of Metropolitan St. Louis stopped paying them before it collapsed, and that money previously withheld from their wages for health insurance, taxes, and child-support payments was not sent to the relevant agencies, leaving them with thousands of dollars in unpaid bills.

The corporation was one of Missouri’s largest federally supported agencies serving low-income residents, receiving $12-million a year in U.S. grants and providing health, housing, employment, and other aid to 100,000 clients. It shut down in late August owing more than $1-million to employees, contractors, and creditors.

Charles Barge Jr., the president of the charity’s board, acknowledged that it had not made some insurance and tax payments because “money ran out.” He said the board has agreed to start liquidating assets and added, “I want to get the employees paid more than anything else.”