1. The Ritz‑Carlton, Half Moon Bay
- In July 2025, the California Labor Commissioner’s Office issued over $2 million in citations against Ritz‑Carlton and three subcontractors for misclassifying 155 janitors as independent contractors.
- These workers were denied minimum wage, overtime pay, paid sick leave, workers’ compensation, and other basic labor rights.
- The contractors—Empire Unistar Management, TK Service of Virginia, and JM Spa Group—were not registered under California’s janitorial registration program, a requirement under state law.Reddit+15CalDIR+15City Attorney+15
2. Cheesecake Factory Janitors — San Diego & Orange County
- From 2014 to 2017, at least 589 janitors cleaning Cheesecake Factory restaurants were employed by subcontractors and consistently underpaid—denied overtime, proper wages, meal and rest breaks.
- In 2018, California issued a wage theft citation. A $1 million settlement followed in January 2024, with Cheesecake Factory paying $750,000, Americlean Janitorial Services $200,000, and Magic Touch Commercial Cleaning $50,000.
- Workers reported shifts starting after midnight, staying beyond eight hours without approval, and enduring unpaid overtime. One worker described working 9–10 hours nightly for just $70/day.CalMatters+5CalDIR+5HR Dive+5CalMatters+4KQED+4HR Dive+4
3. Los Angeles Grocery Janitors (Not Hotels, but similar industry risk)
- In August 2024, the LA City Attorney filed suit against janitorial contractors working for supermarket chains. The complaint covers systemic violations: failure to pay minimum and overtime wages, missing meal/rest breaks, poor records, and misclassification.
- The janitors, largely immigrant and economically vulnerable, were denied workers’ compensation, sick leave, and other protections. This highlights how chaining via subcontractors facilitates exploitation in property service industries.City Attorney
4. Long Beach Convention Center Subcontractor Case
- While not a hotel, this case shows a similar pattern of subcontracted wages in hospitality-adjacent work. In March 2025, a local union accused 1Fifty1 Inc., a subcontractor, of paying workers under the table cash wages, often below minimum wage and without overtime, violating payroll tax rules and wage-statement laws.Reddit+12Los Angeles Times+12thebusinessjournal.com+12
🔍 Why These Cases Matter for WRC A’s Advocacy
- Misclassification as “independent contractors” (rather than employees) is a central tactic used by hotel subcontractors to deny labor protections—including workers’ compensation.
- Many of these cases involved immigrant, non-English speakers or economically marginalized workers, who are less likely to report violations or demand their rights.
- These cases set enforcement precedents and demonstrate where policymakers can focus attention: janitorial registration compliance, joint employer accountability, and proactive audits.
- They reflect the systemic nature of exploitation in the janitorial industry tied to large employers (e.g. hotels, restaurants) using subcontracting chains.
📋 Summary of Key Cases
| Case / Location | Workers Affected | Misclassification Abuse | Outcome / Penalties |
|---|---|---|---|
| Ritz‑Carlton, Half Moon Bay | 155 janitors | Independent contractors, no protections | >$2 million citation covering wages and penalties |
| Cheesecake Factory (San Diego, Orange) | 589 janitors | Subcontracted, unpaid overtime, no breaks | $1 million settlement; joint liability enforced |
| Grocery Janitors (Los Angeles) | ~65 workers (grocery stores) | Same pattern: no comp, rest, wages, record violations | Active civil suit seeking restitution & injunctive relief |
| Convention Center Custodial (Long Beach) | Event facility cleaners | Cash wage, under minimum wage, no documentation | Complaint filed, contract terminated, investigation ongoing |
Works Rights Compliance Alliance 