The Ritz-Carlton, Half Moon Bay and three of its janitorial contractors have misclassified 155 janitorial employees as independent contractors, according to the California Labor Commissioner’s Office — and the janitorial subcontractors, as well as the Ritz-Carlton company, are now liable for more than $2 million in citations.
Around $1.9 million of that citation is wages and penalties payable to the affected workers, who were misclassified as independent contractors, a July 16 press release said.
“This is something that is actually quite typical in the janitorial industry. The janitorial industry in California is plagued with unlawful subcontracting,” California Labor Commissioner Lilia García-Brower said. “This is not a new issue. This is a long-standing practice in this industry, and it is something that the legislature and various administrations have worked to address.”
The California Labor Commissioner’s Office allows for any employers or contractors cited by the Labor Commissioner’s Office to appeal the citation within an allotted window, if they so choose, García-Brower said. After that process, the office then works to get employees reimbursed for their time and labor.
In this particular case, Georgia-based janitorial contractor Empire Unistar Management, who provides the Ritz-Carlton, Half Moon Bay with janitorial services, subcontracted out to two other out-of-state companies, Virginia’s TK Services and Florida’s JM Spa Group.
If those subcontractors don’t pay for wage assessments and penalties, the original contractor and the Ritz-Carlton Hotel Company LLC will be jointly liable for $746,001, the press release said.
The Ritz-Carlton, Half Moon Bay, Empire Unistar Management and TK Services did not immediately respond to requests for comment.
In California, an established janitorial registration program requires janitorial service providers, like the Ritz-Carlton’s subcontractors, to register with the Labor Commissioner’s Office. This helps janitorial staff receive basic legal protections like minimum wage, overtime and paid sick leave, the press release said.
García-Brower emphasized that employees are eligible for these labor protections regardless of their immigration status.
“These protections apply to all workers. Immigration status is not relevant in California,” she said. “All workers, if you find yourself in a situation where you are not being paid properly, we encourage them to come to our office and understand that we will not inquire as to immigration status.”
The Labor Commissioner’s Office Bureau of Field Enforcement conducted an investigation into the Ritz-Carlton, Half Moon Bay’s labor practices after being referred by the San Mateo County District Attorney’s Office, the press release said. Both the DA’s Office and coastal nonprofit Coastside Hope helped facilitate and participate in interviews with the affected workers.
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