$2M Penalty: A Janitorial Compliance Warning

The wrong janitorial partner can cost more than you ever saved. On paper, the deal looked great, but the true costs were buried in overlooked compliance issues.

The California Labor Commissioner’s Office recently fined Ritz-Carlton over $2 million. This fine was issued for misclassifying 155 janitors as independent contractors. This misclassification denied workers critical protections, including minimum wage, overtime pay, paid sick leave, and workers’ compensation.

If your business utilizes outsourced janitorial services in California, this case serves as a crucial warning. Non-compliance with California labor laws governing janitorial services can expose your company to severe financial penalties and joint liability. Contract Services Group (CSG) provides fully registered, bonded, and compliant janitorial services that eliminate these risks.

California Janitorial Service Compliance: What You Must Know

The Property Service Workers Protection Act of 2018 and subsequent California labor laws impose strict requirements on janitorial service providers and their clients. Understanding these regulations is essential for protecting your business:

1. California Janitorial Registration Is Mandatory

   • All janitorial employers with employees working in California must register annually with the California Labor Commissioner’s Office. The California Janitorial Registry ensures your provider complies with wage laws, benefits, and workplace safety regulations.

2. In-Person Training Requirements

   • Janitorial companies in California are required to train all staff in person on sexual harassment and workplace violence every two years to comply with the law.

3. Joint Employer Liability Risks

   • Clients will be held financially liable if their janitorial contractors violate labor laws.

4. Beware of Out-of-State Subcontractor

   • Layered subcontracting to unregistered or out-of-state janitorial firms is a frequent compliance violation and puts your business at substantial risk.

5. Severe Penalties and Wage Restitution

   • Failure to comply can result in fines ranging from thousands to millions of dollars, along with required restitution of unpaid wages to affected janitorial workers.

     
     

How to Verify Your Janitorial Service Provider’s Compliance in California

Protect your business by verifying your janitorial provider’s registration and compliance status:

1. Visit the California Janitorial Registration Program official website: https://www.dir.ca.gov/dlse/Janitorial_Registration_Required_Documents.html

2. Search for your janitorial service company by name to confirm current registration status.

3. Request copies of proof of registration and compliance documentation regularly, since registration must be renewed annually.

4. Avoid providers who refuse to provide proof or who subcontract to unregistered entities, especially out-of-state firms.

   
   

For additional information and resources, please visit our previous blog post.

Key Lessons from this Misclassification Case

There are many janitorial providers that appear trustworthy on the surface. But as a company, it’s your responsibility to protect yourself. Always verify that your janitorial provider is registered under California’s janitorial program and is fully compliant with state labor laws.

Lower prices and quick fixes always seem appealing. However, they often come at the cost of legal trouble, financial penalties, and damage to your brand. Choosing a fully compliant partner like CSG ensures your business is protected from these risks.

Don’t Risk Your Business on Non-Compliant Janitorial Providers

California regulators are intensifying enforcement of janitorial labor laws. The time to act is now:

• Verify your janitorial provider’s California registration and compliance status regularly.

• Demand transparency and full proof of compliance documentation.

• Avoid subcontractors, especially unregistered or out-of-state firms.

Why Businesses Trust CSG in California

CSG sets the industry standard for compliance, transparency, and ethical janitorial services in California:

• Fully Registered with the California Labor Commissioner’s Office. CSG maintains up-to-date registration and readily provides proof of compliance to all clients.

• Direct Employment Model—No Subcontracting. All janitorial staff are CSG employees classified according to California law, ensuring full wage and benefit protections. We never subcontract.

• Comprehensive Training and Safety Programs. Our janitorial employees receive all mandatory in-person sexual harassment and workplace violence prevention training on schedule, alongside robust safety protocols.

• Eliminate Your Joint Employer Liability Risk. When you contract with CSG, you transfer compliance risk to us. We assume full responsibility for all labor law compliance, protecting your business.

• Ethical Leadership in California Janitorial Services. CSG prioritizes worker protections and client transparency, delivering janitorial services that meet both legal standards and ethical expectations.

Protect Your Business with Contract Services Group

Avoid costly legal penalties, wage theft liabilities, and damage to your company’s reputation by choosing CSG. Our fully compliant, registered janitorial services keep your property and business in full alignment with California labor laws.

Visit www.csgcares.com or call us today to learn how we put compliance first so you never face enforcement actions like Ritz-Carlton.

For more information on becoming a client, please visit our Client Guide.