The Maine Department of Labor has filed a lawsuit against the defunct Richardson Hollow Mental Health Services of Lewiston and its owner, Linda Hertell, saying the company owes 133 former employees more than $177,000 in back pay and unpaid vacation time.
Filed this week in Androscoggin County Superior Court, the lawsuit seeks that money plus interest and attorney’s fees. It also asks the court to order Richardson Hollow and Hertell to pay employees twice the amount owed because of the losses they suffered when Richardson Hollow breached its contract with them.
Richardson Hollow and Hertell must file a response to the lawsuit.
Hertell could not be reached for comment Thursday. Her business consultant, John Turner, has continually blamed the lack of paychecks on the state Department of Health and Human Services. He says the state cut off Richardson Hollow’s funding and still owes the company money. Without that money, he said Thursday, Richardson Hollow cannot pay its former employees.
“There’s no money for payroll, it’s pretty simple. We can’t make a chicken a duck,” he said.
DHHS has denied Turner’s claims, saying it’s already paid Richardson Hollow all the money it’s owed.
Based in Lewiston, with offices throughout Central and Coastal Maine, Richardson Hollow served adults and children with mental health issues. At its peak, the 10-year-old company had about 1,000 clients and more than 200 employees.
But for the past several months, Richardson Hollow faced growing financial problems. Paychecks ran late and workers weren’t fully reimbursed for mileage. Top managers were laid off. Workers in the “daily living support services” program were told to give up their benefits or quit.
The state requested an audit of the company’s books, questioning its accounting structure.
Then, in mid-September, Richardson Hollow closed its doors. Sweetser, a Saco-based mental health agency, took over the company’s clients and hired many of its workers.
The Department of Labor’s lawsuit claims former employees never received a paycheck for that last week of work in mid-September. It alleges most people are owed between $300 and $700 in pay for that week, with a few reaching $1,000.
Jeanne Fales, Richardson Hollow’s former human resources director, is owed just over $1,200 for the week, according to the lawsuit. But with unpaid vacation time, unreimbursed mileage and a retroactive raise, Fales believes she’s really owed around $5,300.
“And I won’t see it,” she said.
Fales, who is a single mother, is still without a job. Although she’s pragmatic about her situation, she’s concerned about her fellow workers. As dedicated caregivers and case managers who worked long hours and traveled continuously, she said, some of them are owed even more than she is.
“I would certainly like to see employees receive the money they are due,” she said.
So would Jeanne Jones, a former client records specialist for Richardson Hollow. The state’s lawsuit says she’s owed over $470 for the last week she worked. She figured it’s more like $4,000 when vacation time, sick time, unreimbursed mileage and a retroactive raise are factored in.
Jones is hopeful the state’s lawsuit will get her at least some of that money. But she said she and other former workers also hope the suit will simply make a point.
“Something like this shouldn’t go on,” she said.
A Department of Labor spokesman has said that if the lawsuit is unsuccessful – or if the suit is successful but there are no assets to pay employees – the department can ultimately pay former employees out of the state’s Wage Assurance Fund.
Another avenue for employees is a civil suit. But as of Thursday no such lawsuits had been filed in Androscoggin County Superior Court.
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