Cal-OSHA Misused Workers' Comp Funds | Fresno News

Cal-OSHA’s misappropriation of over $30 million in workers’ compensation funds from 2020 to 2026 has sparked outrage — money meant for injured workers was diverted to internal investigations, consulting firms, and even legal fees. The scandal erupted after a decorated Army vet, Michael Loupe, was falsely accused of bizarre misconduct during an 18-month probe that cost taxpayers $80K and allegedly triggered his stroke. Despite DIR’s claim that funds can be “reallocated,” auditors and experts warn this violates Labor Code section 62.5 and risks turning public money into a slush fund — especially when some funds went to a firm run by a former DIR director. This misuse comes amid known staffing crises, raising alarms about accountability and transparency in California’s worker safety system. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/0b115c016aa37103