The City of Santa Monica is facing its second discrimination lawsuit of the year with a former procurement manager for the City alleging a pattern of retaliation and discrimination that culminated in her wrongful termination.
Araceli Esparza, who began working for the city in May 2012, alleges she faced numerous adverse actions after reporting misconduct and advocating for equity within the city's workforce.
Esparza started her career with the city as a Purchasing Services Manager and was promoted to Procurement Manager in the Finance Division in September 2018. Her duties included overseeing the city's procurement functions, developing policies, and supervising staff. She was also an active member of the American Federation of State, County, and Municipal Employees (AFSCME) Council 36 Union, serving as president of AFSCME Local 4819 from January 2020 to January 2024.
In addition to her union involvement, the plaintiff was an Equity Inclusion Officer and a lead organizer of Hispanic Heritage Month activities for the city. However, her advocacy efforts allegedly led to a series of retaliatory actions by her superiors.
The lawsuit claims that beginning in 2020, the plaintiff was subjected to retaliation for reporting what she believed were violations of local, state, and federal regulations.
In March or April 2020, the plaintiff spoke at a City Council meeting about the disproportionate layoffs of people of color within the city. Following this, she was allegedly excluded from important meetings, kept out of relevant committees, and faced heightened scrutiny from her supervisors. The lawsuit asserts that these actions hindered her career advancement and damaged her professional reputation.
Esparza cites several incidents.
In September 2021, she says she was accused of improperly obtaining donations for Hispanic Heritage Month. Despite the plaintiff's denial and explanation, she was called to the City Manager’s Office and questioned about her compliance with donation solicitation rules.
In her complaint, Esparza said she continued to voice concerns about illegal procurement practices and fraudulent invoices, which she believed violated city codes and state regulations. In one instance, she reported the award of multiple contracts exceeding $250,000 to a nonprofit organization without City Council approval. In another, she flagged fraudulent invoices submitted by a city employee, which were allegedly approved by a supervisor.
In August 2022, the plaintiff was placed on administrative leave pending an investigation for allegedly inserting herself into a coworker’s tuition reimbursement request without authorization. Shortly after, she was put on a leave of absence.
In one incident, the plaintiff received an email from Human Resources Director Lori Gentles, accusing her of lying about the number of minority layoffs. The email, sent in all capital, red font, was copied to the entire Equity Inclusion Officer team.
Gentles was also fired by the City and has filed her own lawsuit accusing the city of racism, discrimination, and retaliation. Gentles, who is Black, alleges that persistent bigotry and retaliation from white management damaged her mental health and ultimately led to her firing after she advocated for diversifying the city's workforce.
Esparza’s lawsuit claims that in December 2022, the plaintiff reported the real reason for her administrative leave was her disclosure of illegal procurement procedures. Despite her attempts to defend herself, she was served with a notice of intent to terminate her employment in May 2023 and her termination became effective on October 22, 2023.
The plaintiff alleges that the city's actions have caused her significant emotional and financial harm, including damage to her professional reputation, loss of earnings and benefits, and adverse effects on her personal health. She seeks damages in excess of $25,000 for retaliation, discrimination and wrongful termination.
The City of Santa Monica has declined to comment on the Esparza suit and has filed a defense in the Gentles case denying any wrongdoing.
matt@smdp.com
