AG deal: California cleaners wrongly said workers were independent contractors

Sharon Bernstein, The Sacramento Bee on Jul 27, 2025

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A nationwide janitorial company with four franchises in California has agreed to pay $1.7 million in restitution and penalties to resolve allegations that it misclassified employees as independent contractors, depriving them of protections under the state’s minimum wage and overtime laws.

Under the deal struck with the state, Virginia-based CleanNet USA will pay restitution to the employees as well as a fine of $150,000, Attorney General Rob Bonta said in a news release.

“Too often, franchising is used by predatory businesses to misclassify vulnerable workers and avoid paying a fair wage and other employee benefits,” Bonta said in the news release. “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.”

Bonta said that CleanNet and its California operators, one of which is based in Sacramento, have agreed to change their franchise model and pay restitution to cleaners covering unpaid wages and reimbursement for cleaning supplies. The company has agreed to make its records available to the state Department of Justice for the next three years, and will also train its franchisees on the responsibilities of employers when they hire new workers, the news release said.

“We are pleased that our discussions with the Attorney General have led to an agreement regarding our janitorial services franchise operations in California,” said Robert Erickson, CleanNet USA national director. “This settlement assures the public that the CleanNet business model complies with the recent changes in the laws affecting our industry.”

The agreement must still be approved by a Los Angeles Superior Court judge.

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