Charities Sue United Way Over Payroll Deductions
Three charities filed a $6-million suit Wednesday in Los Angeles Superior Court against United Way of Los Angeles and United Way of California, claiming they have been denied a fair chance to get payroll deduction donations from California’s state employees.
The suit alleges that United Way used a pledge system that encourages contributions to United Way agencies, but which makes it difficult to donate to non-United Way charities.
The suit, which also names the state as a defendant, was filed by Combined Health Appeal, International Services Agency and Environmental Federation of California.
After the suit was filed, the plaintiffs sought and obtained from Superior Court Judge Miriam Vogel a temporary restraining order barring United Way of Los Angeles from distributing pledge cards to state employees without attaching designation cards which allow donors to give to non-United Way charities.
A hearing for a preliminary injunction on the matter will be held Nov. 16. United Way attorney Framroze Virjee said in court, “I believe the campaign we’re running now is fair and in compliance with the law.”
Los Angeles United Way is in the midst of a $95-million fund-raising effort for its 350 human service and health agencies.
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