Dolores Huerta Lawsuit: Grant Misuse and Unpaid Wages Claims

The Dolores Huerta Foundation lawsuit is a wrongful termination case filed in September 2025 by former employee Ruth Sanchez in Los Angeles County Superior Court, alleging she was fired in retaliation for reporting the misuse of a $95,000 city grant and for raising complaints about pay, workload, and a family hire inside the organization. The complaint, Sanchez v. Dolores C. Huerta Foundation (Case No. 25STCV28384), brings 11 causes of action, including whistleblower retaliation, disability discrimination, and unpaid wages. A jury trial is scheduled for January 24, 2028.

Who Filed the Lawsuit and Why

Ruth Sanchez was hired by the Bakersfield-based nonprofit in August 2019 as a county organizer and promoted in 2020 to resource center manager for the foundation’s Los Angeles office, where she was the sole employee.¹ She was fired on July 2, 2024.

According to the complaint, the trouble began when a family member of one of the foundation’s directors was promoted to resource center director above her. Sanchez says she was required to train the new director and perform their duties, and that after she complained internally about the person’s “incompetency and mistreatment,” she was demoted back to organizer and had her pay cut.² The firing followed. She contends it was retaliation for her complaints and for reporting grant misuse.

The $95,000 Grant Misuse Allegation

The whistleblower piece of the case centers on a $95,000 grant from the City of Los Angeles that Sanchez says she personally secured for the foundation. She alleges the money was “not being used according to its purpose for use” and that she reported the problem internally.¹

The complaint goes further, alleging that a separate unnamed foundation employee falsified information and diverted entire grants meant to subsidize wages for paid canvassers.² Those allegations anchor a claim under California Labor Code Section 1102.5, which protects employees who report conduct they reasonably believe violates the law. Under that statute, Sanchez must show her reporting was a contributing factor in the actions taken against her; the foundation would then have to prove by clear and convincing evidence that it would have acted the same way regardless.

Unpaid Wages and Disability Claims

Beyond retaliation, Sanchez alleges concrete labor violations. Running the Los Angeles office alone, she says she routinely worked 60-hour weeks, was never paid for 110 hours of labor, and spent thousands of dollars of her own money on equipment, toys, backpacks, repairs, and mileage that the foundation never reimbursed.¹ She also says she never received her 2024 W-2.

The disability discrimination claim stems from a foot injury. Sanchez says her therapist and health care provider approved a month off, but the foundation did not accommodate her. When she returned after being fired to collect items she had bought with her own money, she alleges she was given only two hours to clear the office despite the injury.¹

Nepotism and Governance Context

The family-hire allegation sits against a governance backdrop visible in the foundation’s own filings. Its 2024 Form 990 reported “conflict of interest transactions” on Schedule L, the IRS category for loans, grants, or business transactions involving key employees, officers, their family members, or businesses they control.³ The 13-member board includes at least five directors from two immediate family groups: Dolores Huerta and her sister Alicia Arong, and Angela Cabrera, Fidel Cabrera, and Camila Chavez, who serves as executive director. Emilio Huerta, identified as a family member of the founder, holds the role of legal services and project manager and received $183,517 in compensation in the 2024 filing year.

Employee reviews on Indeed reflect the same theme. A June 2024 review from a former executive assistant alleged management “directly hires family and friends” and described the office as “overworked” and “underpaid.” A 2017 summer intern review cited nepotism, saying “a third of staff is family.” Other reviews described the foundation as rewarding and its colleagues as passionate.

The Foundation’s Response

The foundation acknowledged the lawsuit in a written statement but did not address the specific allegations. It said the former employee’s “role was impacted by an organizational realignment” and added: “It is unfortunate that the employee chose to file this action without first affording the Foundation the opportunity to respond to and possibly resolve the matter.”⁴ The foundation cited compliance with California employment law as its reason for declining further comment.

Speaking to reporters, the foundation attributed Sanchez’s termination to “organizational realignment” and “downsizing” and denied it was tied to job performance. Spokesperson Erik Olvera said the Sanchez case is “the first employment-related lawsuit DHF has ever received in its history.”¹

What Sanchez Is Seeking and Where the Case Stands

The 25-page complaint seeks compensation for lost wages, lost earning capacity, and employee benefits, plus damages for emotional pain and suffering. Sanchez also asks the court to order the foundation to adopt policies preventing future discrimination and retaliation.¹ No total dollar figure is specified.

The case remains active in Los Angeles County Superior Court. A final status conference is set for January 20, 2028, with the jury trial to begin four days later on January 24, 2028.

1
KGET. Former Dolores Huerta Foundation Employee Alleges Retaliation, Misuse of Grants in Lawsuit
2
InfluenceWatch. Dolores Huerta Foundation
3
ProPublica. Dolores C Huerta Foundation – Nonprofit Explorer
4
San Fernando Sun. Dolores Huerta Foundation Being Sued for Alleged Labor Violations