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Monday, August 31, 2026

California agency taps workers comp funds to probe its employees. ‘A huge slush fund’ - Sacramento Bee

Michael Loupe worked as a district manager for Cal-OSHA‘s enforcement branch in San Bernardino before retiring because of stress inflicted by an investigation by his agency into allegations he found ludicrous.

In 2023, the Department of Industrial Relations — Cal-OSHA’s parent agency — accused Loupe of shooting a toy bow and arrow at photographs of Gov. Gavin Newsom, DIR Director Katie Hagen and Labor Secretary Stewart Knox in the lobby of his office building.

“Why would I shoot an arrow at a picture of the governor?” Loupe said. “I voted for the guy.”

He was exonerated and stood down at 62 in 2024. He was a decorated Army veteran, a Bronze Star recipient for service in Iraq and Kuwait, but, he said, the stress from his agency investigating him for 18 months had caused him to have a stroke. He believed the actions were retaliation for his criticism of the department — he had questioned the reopening of a case after it had been closed, and he objected to a hire he considered nepotism.

The probe, conducted by an outside firm, not only cost him his health and reputation, he said, records show it cost the department an estimated $80,000, which was paid from workers’ compensation funds. State law prohibits this money from being used for anything other than funding workers’ comp claims and costs.

A review of contracts executed by the DIR from 2020 to 2026 found more than $30 million in contracts paid out of the workers’ compensation fund with little or nothing to do with...



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