CA Attorney General Bonta announces nearly $2 million settlement with janitorial franchising companies barring use of franchising to misclassify workers
Published Date: Jul 25, 2025
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- Action Type Settlement
CA Attorney General Rob Bonta announced a nearly $2 million settlement with CleanNet USA, Inc. and its four California Area Operators resolving an investigation by the Attorney General’s Office, which found that some of CleanNet’s janitorial franchisees were misclassified as independent contractors under CleanNet’s franchising model in violation of state law. Under the settlement, CleanNet will pay $1,700,000 in restitution and $150,000 in civil penalties and comply with injunctive terms requiring it to cease its misclassification of certain cleaners, notify all former and current workers of the settlement, and undergo monitoring for three years, among other terms. “Too often, franchising is used by predatory businesses to misclassify vulnerable workers and avoid paying a fair wage and other employee benefits. I hope this settlement sends a strong message to others in the janitorial or other sectors who might consider skirting the law to save a quick buck. My office is watching, and we won’t hesitate to enforce our employment laws.” – AG Bonta