OAKLAND CITY, Ind. (WFIE) – Former employees at Oakland City University have reportedly received their owed back wages, though payouts for accrued vacation time remain unresolved.
Former employees tell 14 News all owed wages have now been received, but that they are still waiting on vacation time payouts. Some employees on 12-month contracts are still waiting for portions of their pay.
The update follows months of payroll delays and financial turmoil at the university dating back to the spring.
In a social media update posted Sept. 22, university officials outlined a timeline stating former employees were scheduled to receive a third payroll deposit on Sept. 25 through ADP. The university stated that a fourth and final payroll deposit for all staff employees and faculty on nine-month contracts was expected by the first week of October.
At the time, OCU noted that 14 faculty members on 12-month contracts, along with summer adjunct faculty, would continue receiving remaining payroll through October.
We reached out to OCU President Dr. Ron Dempsey for a statement on Friday, and he told us:
“Yes, the missed payrolls for staff and nine month faculty contracts have been all paid. The fourteen faculty members who are on 12 month contracts have four remaining pay periods. We hope to have two of those completed by the end of October and the remaining two in November. We will focus on vacation pay after we complete the 12 month faculty payrolls.”
The payroll progress comes on the heels of major structural fallout at the institution. Late last month, Oakland City University voluntarily resigned its accreditation with the Higher Learning Commission, an action set to take effect June 30, 2027.
Financial distress at OCU began escalating publicly in April with a state WARN notice of potential mass layoffs, followed by missed paychecks in May. The university subsequently laid off more than 100 employees and suspended all undergraduate programs for the 2026–27 academic year, opening the fall semester with just 61 students enrolled.
14 News will continue to follow this story and provide updates as more information becomes available.
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