Paychecks bounce from Sheehan Health

BUFFALO, N.Y. (WIVB) - Employees at one local company say they got their paychecks last month, only to find out they bounced. Now they've been told they won't get their next paycheck, making it a month without any pay. So what can employees do?

This is not a good friday for Denise Giangrosso.

Giangrosso said, "I'm angry and I'm hurt because I worked here in good faith."

Giangrosso, a registered nurse at Sheehan Health Network on Michigan Avenue in Buffalo, says her most recent paycheck from the medical facility bounced.

"They tell us six days later that our checks are going to bounce," said Giangrosso.

And there are other workers, like counselor Steven Sanders, who says his check bounced, too.

Sanders said, "I think it was criminal that way it was handled. They released these checks, I believe, fully knowing that there was not enough funds to cover all of the checks."

Workers provided News 4 with a memo from Sheehan administrators to staff that spells out more bad news for the next payroll period. It states, "We will not be able to meet payroll, which is to be distributed on June 24th, we are diligently working to resolve this matter."

>> Read the full memo and statements from Sheehan here

"Who works for free? I can't afford to work for free. If I did, I'd be a volunteer instead," said Giangrosso.

Sharon Schultz, whose CWA Local 1168 represents about 25 registered nurses, talked with Sheehan officials.

Schultz said, "No one will be paid. Not even the CEO right on down. They owe their vendors over a million dollars."

Many people in the surrounding community depend on Sheehan and are worried about what the future holds.

Jessica Dugan said, "It depends on my sobriety and my every day living. I'm here four times a week. And without this place, I don't know what I would do."

Kathleen Mueckl said, "It's a lot of outpatient and rehab here. They focus more on that. So it's pretty important to have something like that in your community."

Right now, things look uncertain, especially for employees.

Sheehan President and CEO Mary Kargbo released a statement to News 4 saying, “A financial burden has developed as a result of losses that Sheehan has endured due to reduced reimbursement in the last couple of years.”