Gov. Rick Scott tells Tampa Bay CareerSource boards to make leadership changes
Zachary T. SampsonTimes staff writer
Published: March 9, 2018
Updated: March 9, 2018 at 02:43 PM
Gov. Rick Scott reiterated his call on Friday for leadership change at Tampa Bay’s two job placement centers amid ongoing state and federal probes into their activities.
His message came after board members for CareerSource Pinellas and CareerSource Tampa Bay in Hillsborouh rescinded votes to fire their president and CEO Edward Peachey this week.
“With multiple ongoing investigations currently being conducted … including potential criminal charges, it’s unbelievable that the proper steps to protect taxpayers have still not been taken,” said Scott’s communications director John Tupps.
Peachey was fired last week, but only for a short period of time before board members pulled back the decision. Small executive committees of CareerSource Pinellas and CareerSource Tampa Bay had voted to terminate him without cause at the end of last month, electing to give him five months severance in exchange for him not suing the agencies.
Within days of the firings, board members in both Pinellas and Hillsborough counties invoked a rule to void the decisions until the matter could be brought before the full boards.
Investigators are trying to determine whether the agencies led by Peachey inflated the number of job placements they reported to state officials. They receive millions in tax dollars annually to help people find work and have received state incentive money in part based on their placement figures.
Current and former employees have also told the Tampa Bay Times that Peachey was in a romantic relationship with a top administrator he oversaw, Haley Loeun, who was fired two weeks ago. Her salary had ballooned in recent years as three of her relatives got jobs at the local CareerSource offices.
The governor, according to Tupps’ statement, has further directed the state Department of Economic Opportunity “to fully review any potential severance for employees at CareerSource Pinellas and CareerSource Tampa Bay.
“These employees should be treated no different than any other public employee,” Tupps said. “Taxpayers deserve better.”
The local CareerSource boards are reviewing how much severance they can pay Peachey, who has no employment contract and is an at-will employee. His attorney, Marion Hale, has threatened a lawsuit if he is not paid for his separation from the agency.
Pinellas County Attorney Jewel White said a state law could limit any severance for Peachey to six weeks because he leads a government entity — both work centers rely on taxpayer dollars.
But local CareerSource lawyer Charles Harris told executive committee members in Hillsborough County on Thursday that they could likely get around the law if they classify the payment as a settlement, not severance.
Harris said he does not believe that Peachey has a strong claim to win a lawsuit, but it could be cheaper to pay a settlement than engage in a legal battle.
County commissioners, who serve as the vice chairs of each board, oppose any payout, especially with ongoing criminal investigations.
“This community is completely outraged over the severance,” said Hillsborough County Commissioner Sandy Murman. “This is not a decision that we should take lightly. Whether it is a severance or settlement, it’s still a payment.”
Pinellas County Commissioner Pat Gerard said the governor’s statement “seems pretty clear” on what the board should do.
“I wonder if it will be enough to convince the board to do the right thing,” she said. “It seems some have been waiting for someone to tell them what to do.”
Peachey has been on administrative leave since early last month, without pay in Hillsborough and with pay in Pinellas. He is slated to remain on leave until the full boards of each agency decide his future. The Pinellas board is set to meet March 21. Hillsborough meets March 22.
In January, the governor called for the board of directors at both job centers to schedule emergency meetings to deal with the allegations. His letter came days after the Times asked the Florida DEO about whether CareerSource Pinellas and CareerSource Tampa Bay improperly claimed credit for putting people to work who they hadn’t actually assisted.
