US Department of Labor investigates Saint Augustine's University after missed paychecks

The U.S. Department of Labor is investigating Saint Augustine's University amid its months-long financial crisis, sources tell WRAL News.

According to the federal government, the labor department's wage and hour division is investigating Saint Augustine's as an employer after employees went months without paychecks.

In early May, a group of students graduated from Saint Augustine's University, just one month after students were asked to leave the campus and finish the semester virtually in an attempt to save money.

Saint Augustine's is fighting a challenge to its accreditation for a third time. Accreditation is the official, formal and independent process by which universities demonstrate that they meet quality standards.

In early 2024, employees told WRAL News they hadn't been paid for multiple pay periods.

Students at the school also told WRAL News they did not receive their tuition reimbursement checks from the school in the spring 2024 semester, with some saying it happened to them in the fall semester as well.

The Southern Association of Colleges and Schools Commission on Colleges ( SACSCOC) is the agency that accredits St. Augustine’s University. On Feb. 27, the SACSCOC Board of Trustees denied a university appeal and informed St. Augustine’s that it would lose its accreditation.

In a written statement on March 1, 2024, Interim president Dr. Marcus Burgess assured students, faculty and staff that the university will remain accredited as the school continues to address the board’s decision in the courtrooms. He admitted the school is in a "very dire" situation but said it will not shut down even as it fights to maintain its accreditation.

WRAL News has a timeline of the financial struggles at Saint Augustine's University.