Dave Regan and SEIU-United Healthcare Workers West, a California union backing a proposed billionaire tax, are facing accusations of engaging in mob-like "shakedown" tactics. A lawsuit claims the union used a ballot measure to "extort" concessions from small healthcare organizations.
The 67-page civil lawsuit, filed September 18 in the U.S. District Court for the Eastern District of California, alleges that the union and Regan engaged in "unlawful and extortionist practices." The suit contends that millions in union dues were spent on divisive ballot measures to extract concessions from community health centers and other entities across the state.
Proposition 44, a measure pushed by the union after a similar legislative attempt failed last year, is cited as a key example in the lawsuit. This proposition would mandate that clinics spend 90% of their revenue on patient care, with the state empowered to fine non-compliant facilities.
According to the lawsuit, the union allegedly offered to withdraw the measure in exchange for an agreement on union election procedures at clinics, which included demanding 25,000 new union members for SEIU-UHW. Plaintiffs, including several small clinics, assert that this conduct violates the Racketeer Influenced and Corrupt Organizations Act (RICO), constituting a "sustained racketeering scheme."
Critics argue that these tactics are part of a pattern where the union uses costly and controversial ballot measures as leverage. The complaint states this is done "to obtain money, property, access rights, confidential information, and control over core business functions and labor-relations policies—interests that constitute 'property' under federal and California law."
Brandon Thornock, CEO of Shasta Community Health Center, one of the plaintiffs, stated, "It’s inexcusable that Dave Regan and UHW have orchestrated a multi-year campaign of threats and bullying that would inflict crippling damage on health centers like ours and the patients we treat."
Jo Cambell, CEO of Hill Country Community Clinic, another plaintiff, described the union's actions as a "repulsive act of politics." She added, "In rural Northern California, community health centers are the only source of care for hundreds of miles. Prop 44 would have devastating effects for patients across our region."
Additional plaintiffs include the California Primary Care Association, Mountain Valleys Health Centers, Centro de Salud de la Comunidad de San Ysidro, Inc., and McCloud Healthcare Clinic, Inc.
The lawsuit claims SEIU-UHW has spent $216 million from union dues on numerous ballot measures.
SEIU-UHW has denied the allegations, calling them "categorically false." A spokesperson stated, "This is the second time the [California Primary Care Association] has attempted to use legal filings to bully SEIU-UHW members into backing down from holding clinics and their CEOs accountable to the patients and communities they are supposed to serve."
The union defended Proposition 44, asserting it will "increase transparency, reduce wasteful executive spending, and ensure clinic healthcare dollars go where they belong: caring for Californians in need."
This is not the first time Regan has faced accusations of threatening behavior. Former SEIU executive Courtni Pugh, who is leading an effort to stop the billionaire tax, accused Regan of assault in 2009. This claim emerged from an investigation into Regan's conduct, prompted by complaints of intimidation and bullying. A report from the investigation reportedly substantiated allegations that he threatened and intimidated women on the SEIU's state council to gain support for the billionaire tax.
Regan's representatives have denied these allegations, attributing them to political disagreements. SEIU-UHW officials previously stated, referring to Pugh's allegations, "At the center is a trumped-up claim from 17 years ago that comes less than two months before the billionaire tax goes to the voters — a claim from someone whose firm is being paid handsomely to work against the billionaire tax."