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Thursday, April 9, 2026

Union Lawsuit Alleges Retaliation for Whistleblowing in SF City Hall Corruption Probe - NBC Bay Area

Union officials representing San Francisco Department of Public Works and San Francisco Public Utilities Commission workers on Wednesday filed a lawsuit against the city, alleging the city is denying workers basic rights as retaliation for a widespread federal corruption probe.

The lawsuit has been filed in San Francisco Superior Court by the Laborers International Union Local 261, as well as union members Theresa Foglio-Ramirez and Juan Rivera.

The suit alleges that union officials began complaining to city leaders and others starting in 2018 about suspicions the SFPUC and DPW department heads were diverting public funds to nonprofit organizations. In particular, the union found issues with the DPW's workforce training program and the SFPUC's community benefits program, alleging both programs were funneling taxpayer money through the organizations.

But, the suit alleges, no action was taken, prompting union officials to instead bring their complains to federal authorities, which in turn, sparked a widespread corruption probe that eventually became public after former DPW Director Mohammed Nuru was arrested and charged with wire fraud in January 2020.

The federal corruption investigation remains ongoing and has, so far, resulted in charges for a dozen other defendants, including former SFPUC general manager Harlan Kelly.

The suit alleges the city has harassed and discriminated against union members in retaliation for the whistle blowing. In addition, the suit alleges, the...



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