Amaral v. Cintas Corp. No. 2

These appeals concern the constitutionality and application of a living wage ordinance enacted by the City of Hayward (City) and incorporated into its municipal contracts. Although Cintas entered into such contracts with the City, it did not provide the minimum wages or benefits required by the ordinance to employees who worked in the companys stockroom or laundry production facilities, which are located outside o of such employees, sued Cintas for violations of the living wage ordinance, Labor Code section 200 et seq., Business and Professions Code section 17200 and breach of contract. The trial court rejected Cintass challenges to the constitutionality of the ordinance and, on cross-motions for summary judgment or summary adjudication, found that Cintas violated the ordinance, breached its contracts with the City, and violated several Labor Code provisions as well as Business and Professions Code section 17200. The court awarded back wages and unpaid benefits, imposed penalties for the Labor Code violations pursuant to the Labor CodePrivate Attorneys General Act of 2004 (Lab. Code, 2698 et seq.), and awarded plaintiffs statutory attorneys fees and costs. Cintas challenges nearly every aspect of these rulings on appeal. In separate cross-appeals, plaintiffs dispute the trial courts finding that Cintass conduct was not "willful," challenge the courts calculation of penalties, and claim they are entitled to recover additional costs.