Former Santa Clara City Manager Alleges Retaliation and Withheld Wages After Raising Concerns About 49ers Stadium Deals

When you blow the whistle on potential legal violations at work, you hope your employer will address the problem. What you don’t expect is to lose your job days later. That’s exactly what a former Santa Clara city manager claims happened to her after she raised concerns about contracts related to the 2026 FIFA World Cup at Levi’s Stadium.

The former city manager, who led Santa Clara from 2017 to 2022, filed a lawsuit in Santa Clara County Superior Court in August. The suit alleges breach of contract, retaliation, harassment and withheld wages following her February 2022 termination by the City Council. According to the complaint, she was fired just two days after publicly warning council members about potential conflicts of interest and concerns regarding the city’s ability to protect its general fund in connection with World Cup contracts.

The lawsuit claims the city hasn’t paid her full severance package, including wages for her final two weeks, accrued leave and deferred compensation. The former manager alleges the city withheld part of her salary in March 2023 and demanded she return the $60,000 she had been paid the previous year. Her separation agreement entitled her to one year’s full compensation. The lawsuit seeks damages for withheld wages and emotional distress in excess of $50,000.

The case highlights important protections that California law provides to public employees who report potential violations. State whistleblower protections shield workers who report suspected illegal activity, waste of public funds or violations of laws and regulations. These protections apply to both private and public sector employees.

Under California Labor Code Section 1102.5, employers cannot retaliate against employees who disclose information to a government or law enforcement agency when they have reasonable cause to believe there has been a violation of state or federal law. The law also protects workers who report violations internally within their organization or refuse to participate in illegal activities.

For public employees specifically, California Government Code Section 8547 provides additional whistleblower protections. This law prohibits state and local government agencies from taking adverse action against workers who report waste, fraud, abuse of authority, violation of law or threats to public health and safety.

According to the lawsuit, the former city manager raised concerns at a February 2022 council meeting about contracts for the 2026 FIFA World Cup. She warned about potential conflicts of interest. It was later revealed that the San Francisco 49ers made commitments to FIFA on the city’s behalf without its knowledge.

Two days after that meeting, the City Council voted to fire the city manager, citing a “lack of confidence” in her ability to do her job. The timing between her public warnings and her firing is central to her retaliation claims. When adverse employment actions like termination happen shortly after an employee engages in protected whistleblowing activity, it can suggest a retaliatory motive.

The lawsuit describes how her early years as city manager were marked by “exemplary performance evaluations” and pay raises. But according to the complaint, things changed when she “implemented council directives that increased oversight of the Santa Clara Stadium Authority,” which placed her at odds with the 49ers, the main tenant of Levi’s Stadium.

The complaint alleges that certain unnamed council members “continued to press for retaliatory action” even during her final year, when she was still technically employed by the city but on paid leave. This allegedly included the illegal withholding of earned pay and benefits.

California law is clear about wage obligations. Employers must pay all earned wages, including accrued vacation time and other benefits owed under employment contracts. When an employment relationship ends, final wages are generally due immediately if the employee is terminated. Withholding earned wages, whether salary, benefits or severance pay, violates California labor law.

At Erlich Law Firm, we represent workers who have faced retaliation for doing the right thing. If you’ve been fired, demoted or had your wages withheld after reporting suspected violations or raising concerns about illegal activity, our Oakland employment lawyers can help. Contact us today for a free case evaluation to discuss your rights and options.