OAKLAND CITY — Employees at Oakland City University (OCU) will finally receive a long-overdue payroll payment this Friday, nearly three months after the checks were originally scheduled to arrive.
In an update to staff and former employees, OCU President Dr. Ron Dempsey confirmed that the school’s May 8 payroll will be issued via paper check as the university continues to set up its new automated payroll system with ADP.
However, the single disbursement only addresses part of the institution’s ongoing compensation backlog. More than 100 former faculty and staff members are still waiting on three additional missed paychecks. Dr. Dempsey stated that those remaining balances will be issued once sufficient funding is secured and the ADP account setup is fully complete.
A Timeline of Financial and Legal Challenges
The delayed payments come amid severe financial strain at the private, faith-based university located in Gibson County, Indiana.
Over the past several months, the payroll crisis and broader budget shortfalls have triggered significant operational disruptions and legal fallout:
- Lawsuits Filed: In June, multiple lawsuits were filed against the university—including a federal suit seeking class-action status on behalf of employees alleging violations of the Fair Labor Standards Act (FLSA) and the Indiana Wage Payment Statute.
- Workforce Reductions: OCU previously announced major staff cutbacks, laying off over 100 faculty and administrative staff members as part of restructuring efforts.
- Academic Program Suspensions: The university suspended its undergraduate operations for the 2026–2027 academic year, aiming to resume undergraduate programs in 2027–2028 while maintaining its graduate-level coursework. Nearby institutions, including the University of Evansville and Ivy Tech, stepped in to assist displaced undergraduate students with transfers.
- Asset Liquidations and Donors: University leadership previously explored fundraising drives, donor support, and the sale of campus real estate—including a Deaconess Clinic facility—to cover payroll obligations and bolster cash flow.
While Friday’s check distribution offers immediate relief for the May 8 pay period, former employees and legal representatives continue to monitor the university’s progress on resolving the three remaining unpaid pay periods.
