In a groundbreaking move within the janitorial industry, The Cheesecake Factory, along with janitorial contractors Magic Touch Commercial Cleaning and Americlean Janitorial Services, has reached a $1 million settlement in connection to a California state wage theft investigation. The California Labor Commissioner is set to make the announcement today, marking a significant development in labor law enforcement.
State investigators discovered widespread minimum wage, overtime, and employment violations involving over 550 janitors from 2014 to 2017. The Labor Commissioner's Office cited the popular restaurant chain and its contractors for more than $4.5 million in 2018, exposing a pattern of unlawful employment practices.
The Cheesecake Factory case sets a precedent as the first time a company has been held financially responsible for violations committed by a janitorial contractor. This is a significant development in an industry where contracting and subcontracting are prevalent.
The settlement includes a payment of $750,000 from The Cheesecake Factory, $200,000 from Americlean Janitorial Services (which subcontracted work to Magic Touch), and $50,000 from Magic Touch directly. While none of the defendants admitted unlawful conduct, handwritten apologies were issued by Americlean to affected janitors.
As part of the settlement, The Cheesecake Factory is obligated to train restaurant managers and corporate officers in California to oversee janitorial contracts. The agreement also requires future and renewed janitorial contractors to undergo audits by the company on wage issues. The landmark settlement signifies a crucial step in addressing wage theft issues in the janitorial industry.