Cintas pays $24 million to settle overtime lawsuit
August 21, 2009
CINCINNATI — JanSan uniform and mat supplier Cintas Corporation has reached a tentative deal in a 2003 class-action complaint that alleged the company illegally withheld overtime pay to drivers on its delivery routes, according to the Business Courier of Cincinnati.
Though they believe they properly classified and paid their drivers, Cintas will pay $24 million to settle the claims and avoid the expense and distraction of protracted litigation, the story stated.
The lawsuit, initially filed in U.S. District Court in San Jose, alleges that Cintas misclassified route drivers as exempt employees under wage-and-hour laws in order to avoid having to pay them overtime for working in excess of 40 hours in a workweek.
On top of the $24 million settlement, Cintas will take a one-time charge of about $12 million after taxes and insurance proceeds, a figure equal to roughly 5 percent of the company''s fiscal 2009 earnings, the story noted.
Cintas did not say if the settlement would result in a change in the way it classifies or pays its drivers in the future, the story added.
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