California spends $35M on 'trusted sources' to ensure workers knows their rights

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(The Center Square) - California’s Department of Industrial Relations (DIR) has announced $34.9 million in grants to nonprofits and labor unions that will help “at-risk” or undocumented workers understand their rights, including hundreds of thousands of dollars for a nonprofit that routinely pays its CEO more than $1 million a year.

The grant program, formally titled the California Workplace Outreach Project, is expanding to give money to more than 100 “community-based organizations.” According to the government, these “trusted messengers” are in a better position to educate workers about their rights, particularly with undocumented workers being reluctant to report unsafe conditions. Spanish is the most commonly used language in the program’s outreach.

The announcement came the week before Labor Day as part of Labor Rights Week. 

“Because these organizations are rooted in the communities they serve, they can help reach workers who may face barriers, such as fear of misinformation, to accessing state resources,” said DIR Director Jennifer Osborn. “Addressing these barriers for the most at-risk workers helps support safe workplaces for all Californians and a level playing field for law-abiding employers.”

California Assemblyman Carl DeMaio, R-San Diego, characterized the program as a waste of taxpayer dollars.

“Most of these organizations do not have the qualifications,” DeMaio said at a budget hearing in February 2025. “How can taxpayers not conclude anything other than the fact that this is a slush fund to fund left-wing organizations?”

Recipients of taxpayer philanthropy

The California Workplace Outreach Project began in 2021 as a pandemic-response program with 61 community-based organizations. It has since expanded to 104 organizations participating from July 2025 through June 2027.

A review by The Center Square has found that many of the organizations, which are nonprofits or labor unions, have received a substantial amount of government funding in the past. In some cases, the nonprofits receive more than half of their revenue from grants or have reported paying high salaries to their top executives.

Of the 104 organizations, 10 are 501(c)(5) labor unions. One organization is a 501(c)(4) social welfare group. One is a government agency. The rest are public institutions or otherwise affiliated with 501(c)(3) nonprofits.

According to grant rules, political contributions and lobbying activities cannot be paid for with taxpayer funds. Grantees are required to report their activities to the state, submit invoices, and retain receipts for inspection by DIR. 

Erika Monterroza, a spokeswoman for California’s Department of Industrial Relations, did not answer whether any organizations have been audited or failed to meet performance requirements.

Despite the “community-based organizations” moniker, California isn’t merely funding small grassroots organizations that need state money to reach hard-to-contact workers. One of the program's new grantees is a billion-dollar international organization whose CEO receives nearly $1.2 million and whose operations already receive hundreds of millions of dollars from government agencies. 

International Rescue Committee, which is receiving $200,000 to conduct worker outreach in Turlock, has paid its CEO David Miliband more than $1 million each year since fiscal year 2018-2019, according to the nonprofit’s tax filings. Several other executives have received more than $400,000. Its latest audited statements reported $513.1 million in grant and contract revenue from U.S. federal and local government agencies, plus $287.9 million from European agencies. The nonprofit is based in New York City and reported $1.31 billion in revenue during fiscal year 2024-2025.

Alianza Nacional de Campesinas, an Oxnard-based nonprofit, reported approximately 95 percent of its $22.6 million revenue being subsidized by taxpayers through government grants in fiscal year 2023-2024. The organization describes itself as the first national women farmworkers’ organization in the country. Its revenue has exploded, with the nonprofit receiving 40 times more than it did in 2020.

Tax returns show Alianza's rapid growth has coincided with an influx of government funding. Its largest program in 2024 was the U.S. Department of Agriculture’s Farm and Food Worker Relief program. The nonprofit's tax return shows millions of dollars flowing to other organizations that helped distribute relief payments to eligible workers.

ValorUS, a Sacramento-based nonprofit, reported that government grants made up more than 61% of its revenue in fiscal year 2023-24, while CEO Sandra Henriquez received $287,210 in compensation — about 35% more than the year before.

Measuring impact: Some workers were “reached,” others were “touched.”

The California Workplace Outreach Project measures its outreach efforts by permitting tactics such as door-to-door canvassing, phone banking, training, workshops, meetings, texting, emails, direct mailers, flyers, social media posts, interviews, articles, blogs, and newsletters.

According to its most recent press release, DIR says the program has already “reached” more than 2 million workers and employers in 42 languages – including 11 Indigenous languages – since its launch in 2021.

For context, California’s most recent jobs report showed approximately 18.5 million employed residents, so a “reach” of 2 million workers would be equivalent to roughly 11 percent of everyone employed in California – about one out of every nine workers.

An earlier report from 2024 indicated the campaign had touched 7.5 million people, with a “touchpoint” being defined as “the sum of all interactive and education-focused outreach.” If accurate, that would be equivalent to approximately 40% of California’s workforce. The figures are substantially larger than the number DIR now uses to describe the program’s cumulative reach.

Monterroza did not answer questions from The Center Square about how the state measures workers being “reached” or “touched.” She also did not answer whether the same individuals can be counted more than once or if the reported numbers have been independently verified. 

Instead, she circled back to the program's purpose.

“Education is one of the most effective tools we have to prevent workplace violations and injuries,” Monterroza wrote in an email to The Center Square. “When workers understand their rights and employers understand their responsibilities, hazards and other workplace issues can be addressed before they result in serious injury, death or enforcement action. CWOP helps bring that information directly to workers throughout California, including those who can be most at risk or difficult for government agencies to reach.”

In March 2026, DIR Deputy Director Michelle Yoon told an Assembly budget subcommittee that the program had directly helped approximately 1,000 workers prepare or file a complaint or claim. Another 1,100 workers received help pursuing alternatives, such as demand letters to their employers.

DIR has not provided The Center Square with data showing how much money has been recovered as a result of the program.