Kentucky opens wage investigation into Addiction Recovery Care as workers say they've gone weeks without a paycheck

LEXINGTON, Ky. (Nov. 14) — Kentucky has opened an investigation into Addiction Recovery Care, the rehab company that was once the state's largest addiction treatment provider, after employees complained they have gone weeks without being paid.

The state Education and Labor Cabinet confirmed Friday that its Division of Wages and Hours opened the case after getting multiple complaints about unpaid wages, the Lexington Herald-Leader reported. Gov. Andy Beshear's office said the administration is taking the reports seriously and urged anyone who hasn't been paid by an employer to file a complaint with the cabinet.

One current employee, Brittany Worthington, told the Herald-Leader she still hadn't received a paycheck that was due Oct. 30, with another due Friday. She said some coworkers have gone more than a month without pay, one lost internet service and couldn't work, and another is selling things out of her home to cover bills. "We are struggling," she said.

A former employee, Kim Hollingsworth, told WKYT the company switched from direct deposit to paper checks over the summer, and that some of those checks bounced. She said workers were also told their health plan was showing as canceled and that 401(k) deductions were paused in September. Hollingsworth said she gave notice Oct. 29. "We're not volunteers," she told the station.

In a Nov. 12 internal email obtained by the Herald-Leader, company leaders apologized for the "hardship and uncertainty" and said they hoped to get the Oct. 30 payroll out as soon as possible. Earlier messages blamed the delays on Kentucky Medicaid. According to the newspaper, one email said ARC companies took in only 30% of their normal weekly collections during the week of Oct. 12. The company is still expected to become part of Unison, the email said.

ARC did not respond to requests for comment from either outlet.

The company's troubles go back several years. It recently agreed to a $16 million civil settlement with the U.S. Justice Department over its Medicaid billing, and its founder and former CEO, Tim Robinson, faces federal fraud and money laundering charges, with trial set for February 2027, the Herald-Leader reported. ARC has closed facilities and laid off staff across the state since 2024.