Facts

Defendant Cintas Corp. had a contract with the Los Angeles Department of Water and Power (DWP) that included laundering uniforms worn by DWP employees. Cintas production and stockroom workers, in plants where Cintas serviced the DWP contracts, filed a class action suit for back wages, interest, and penalties, alleging violations of the city of Los Angeles' Living Wage Ordinance (LWO). Under the LWO, covered contractors with the city must pay a "living wage" that is slightly higher than the minimum wage.

The court initially ruled that Regulation 5, which limited LWO coverage to employees who worked at least 20 hours per month on a covered contract, was enforceable. However, in Aguiar v. Superior Court, the California appellate court found that Regulation 5 conflicted with the LWO and was, therefore, invalid.

PLAINTIFFS' CONTENTIONS:
The plaintiffs alleged that the DWP-Cintas contracts required Cintas to comply with the LWO. The plaintiffs contended that Cintas did not pay the required "living wage" to those employees that performed covered contract work. The plaintiffs further contended that Regulation 5 was invalid because it conflicted with the LWO, as held by the appellate court in Aguiar v. Superior Court.

DEFENDANT'S CONTENTIONS:
Cintas contended that it did not violate any law or breach its contracts with the city. Cintas contended that the LWO did not apply because of Regulation 5. Cintas' contended that the evidence showed that the class members worked far less than 20 hours per month on the covered contract, making the LWO inapplicable according to Regulation 5.

Result

The parties reached a settlement providing $3.3 million in back wages and interest, $2.6 million in attorney fees, and costs. The settlement also provided $250,000 in penalties, to be divided between the class members and the California Labor & Workforce Development Agency. The settlement is awaiting court approval.