LANCASTER COUNTY, Pa. — Employees of a multistate company, which has two locations in Lancaster County, are being left with more questions than answers, after unexpectedly losing their jobs this week.
Retreat Behavioral Health, which has an inpatient location in Ephrata and outpatient location in Akron, has suddenly shut its doors.
That’s according to internal emails obtained by FOX43, which were sent by Scott Korogodsky, the Chief Administrative Officer of Retreat Behavioral Health.
One employee, who spoke with FOX43 on the condition of anonymity, says they were informed earlier this week, after the sudden and unexpected death of the company’s CEO, Peter Schorr, who passed away June 21.
Schorr's death was announced by the company via Facebook on June 22. An obituary posted for Schorr through the Edwards Dowdle Funeral Home in Dobbs Ferry, NY asks for memorial contributions to the American Foundation for Suicide Prevention.
On Thursday, FOX43 confirmed with authorities in Florida Korogodsky passed away on Wednesday, June 26. The death was confirmed by the Palm Beach County Medical Examiner's Office.
The Lantana Police Department also confirmed to FOX43 that officers responded to a death by suicide at Korogodsky's Lantana home on Wednesday. Officers say Korogodsky was the deceased individual.
FOX43 received a tip on Wednesday afternoon regarding possible police activity at Retreat's Ephrata location.
Chief Chris McKim of the Ephrata Borough Police Department confirmed to FOX43 a detective was on site Wednesday. The department had received a call from a resident, concerned about what would happen to therapy animals used by the facility once it closed. Chief McKim says the animals are housed off-site and Retreat ensured police the animals are being taken care of properly.
Along with its Lancaster County facilities, Retreat runs drug, alcohol and mental health treatment centers in Florida and Connecticut.
According to other media reports, those facilities have also closed.
FOX43 was told the company paid workers late earlier this month and missed the most recent pay period altogether.
According to internal emails, the company's leadership acknowledged the previous delays in payment and blamed issues with its payroll processing system.
In a June 21 email announcing Schorr's death to employees, leadership stated:
"We understand there is the matter of payroll we need to address and we are absolutely committed to rectifying this as soon as possible."
Employees say they’ve been coming to work with no knowledge of when their next check will come.
“We do it because we enjoy helping other people," one employee said.
While the employee who spoke with FOX43 said he doesn’t do this work for the paycheck, he tells us that going weeks without one has been a struggle.
“A lot of us live paycheck to paycheck," he explained. "My credit card payments are late so my credit is taking a hit. Basically trying to find side jobs to come up with cash real quick.”
According to employees, the company has not paid its health insurance or life insurance policy since April, yet these costs, along with 401K contributions, have continued to be taken out of workers' paychecks.
FOX43 has reached out to the Pennsylvania Department of Labor and Industry, working to get answers for employees at Retreat who have missed paychecks.
Trevor Monk, press secretary of the state Department of Labor and Industry, provided us with the following response:
"Any Pennsylvanian who believes they have experienced a violation of Pennsylvania’s labor laws – such as wage theft, which is regulated under the Wage Payment and Collection Law -- is encouraged to submit a complaint with the Department’s Bureau of Labor Law Compliance online. The Department investigates all complaints.
Complaints and allegations of labor law violations are not public records and are not disclosed publicly. While we cannot disclose any actions taken at this time, L&I is aware of this situation and stands ready to assist Retreat Behavioral Health workers."
FOX43 has also confirmed with the U.S. Department of Labor that the department's Wage and Hour Division is investigating the situation.
Additionally, FOX43 reached out to the Pennsylvania Department of Human Services and Pennsylvania Department of Drug and Alcohol Programs, regarding the facilities' closures.
The Department of Drug and Alcohol Programs, which oversees Retreat, as it is a licensed drug and alcohol treatment facility, says it received official notification of the facility's closure on Wednesday, June 26.
A spokesperson for the Department of Human Services said:
"DHS is committed to supporting Pennsylvania's behavioral health infrastructure in all communities around the commonwealth, and we support efforts at the county level that provide critical behavioral health services and provide quality services.
Retreat Behavioral Health notified DHS that it is planning to voluntarily close effective June 26, 2024. Under existing regulations, facilities licensed by DHS' Office of Mental Health and Substance Abuse Services (OMHSAS) must provide DHS with at least a 30-day notice prior to closure. However, facilities may provide fewer than 30 days notice of closure if "a delay would jeopardize the health, safety or well-being of individuals, as certified by a physician or the Department."
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