Facts

GMG Janitorial Inc., a California corporation filed a petition for writ of mandate against City and County of San Francisco, Department of Administrative Services, Office of Labor Standards Enforcement (OLSE), Office of the Controller, Hearing Officer Peter Kearns, Real Parties in Interest seeking to set aside a determination finding the company in violation of an Francisco's Health Care Security Ordinance (HCSO), and awarding approximately $1.34 million in restitutionary back pay to 275 employees.

GMG provided janitorial services and building maintenance to clients in San Francisco Bay Area as well as Los Angeles and Orange Counties.

San Francisco's Health Care Security Ordinance (HCSO), enacted in 2006, established the "Healthy San Francisco" program and created an employer spending requirement. This required employers to fund health care benefits for employees in the City.

In 2008, the Office of Labor Standards Enforcement (OLSE), which enforced the City and County of San Francisco's labor laws, including the HCSO, investigated GMG of violating the law for failing to make payments in the amount of $1,339,028 in health care expenditures.

In December 2011, the OLSE issued a "Determination of Violation" and demanded GMG to take corrective actions and for the payment of penalties and back pay to employees. GMG appealed this determination.

In 2012, Administrative Law Judge Peter Kearns denied GMG's appeal and upheld OLSE's determination. This prompted GMG to seek this instant petition for writ of mandate.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that defendants abused its discretion in determining a violation and awarding $1.34 million in back pay because defendants exceeded their authority and failed to follow the law. Plaintiff also contended that Judge Kearns' findings were not supported by the evidence.

Result

San Francisco Superior Court Judge Maria J. Miller upheld the administrative orders finding GMG in violation of San Francisco's HCSO. Judge Miller ordered GMG to pay approximately $1.34 million to 275 of its current and former employees who were denied the health care benefit expenditures they were entitled to under HCSO.