Ritz-Carlton Fined Over $2M for Misclassifying Janitors
The California Labor Commissioner’s Office (LCO) cited the Ritz-Carlton Hotel Co. LLC and three janitorial contractors more than US$2 million for misclassifying 155 janitors as independent contractors at its Half Moon Bay hotel. The citations include $1.9 million in wages and penalties payable to the affected workers.
An investigation by the LCO’s Bureau of Field Enforcement (BOFE) found that the out-of-state contractors misclassified the janitors as independent contractors and denied them basic legal protections, including minimum wage, overtime, paid sick leave, and workers’ compensation benefits.
A study from the UCLA Labor Center found that subcontracted janitors in California are more likely to earn lower wages and face labor violations than those directly employed. To address these systemic issues, California established the janitorial registration program and strengthened joint employer accountability laws to better protect vulnerable workers in the sector.
From July 2021 through January 2024, the Ritz-Carlton contracted with a Georgia-based company, Empire Unistar Management Inc., to handle janitorial services. Empire Unistar Management, in turn, subcontracted the work to two other out-of-state companies—TK Service of Virginia and later JM Spa Group of Florida. None of these janitorial contractors were registered with the state’s mandated janitorial registration program.
California law makes clear that companies cannot outsource responsibility for worker protections. If TK Service and JM Spa fail to pay the wage assessments and penalties, both the Ritz-Carlton Hotel and Empire Unistar Management will be jointly liable for a total of $746,001.
Californian Janitor Workload Study Finds High Frequency of Adverse Health Consequences
Most Californian janitors surveyed experience moderate to severe work-related pain.
Most (85%) janitors surveyed by California’s Commission on Health and Safety and Workers’ Compensation (CHSWC) reported moderate to severe work-related pain in at least one body region. CHSWC also found over half of janitors (57%) had moderate to severe work-related pain in three or four body regions.
Correspondingly, over half of janitors used medication more than once a month to manage their pain, and one in five workers missed work at least every other month due to their pain. Nearly half of respondents to CHSWC’s study had worked as a janitor for more than 10 years and were surveyed between October 2021 and January 2023.
Over half of the janitors who responded (57%) indicated that their income did not meet their household expenses, that it would not be easy to change jobs (51%), and that they would not report an injury (65%). Approximately one quarter of workers also reported that they could not stay home when sick without fear of loss of job or pay.
Additionally, nearly half of workers reported an increase in their workload, disinfecting tasks, and pressure to work faster during the COVID-19 pandemic, and one-third of workers reported not having the protective equipment needed.
The report includes recommendations for California legislators, including consideration of a formal California regulatory standard, as well as facilitation of a collaborative approach to target intervention efforts that mitigate ergonomic hazards.
Click here to read the full California Janitor Workload Study report.