Local Living Wage Ordinance Not Local

Hayward, California has a "living wage" ordinance. This is a local law that requires employers to pay employees more than state or federal minimum wage. Such ordinances typically apply only to employers with city contracts, but San Francisco applies its local minimum wage ordinance to all employers.

Hayward's applies only to city contractors. Cintas had a contract with Hayward to handle laundry services. But many such services were performed outside of Hayward. Employees brought a class action against Cintas, claiming Cintas was violating the Living Wage Ordinance.

Agreeing with the trial court, the Court of Appeal held that Hayward could require city contractors to pay employees under the Living Wage Ordinance, even though the work was performed outside of Hayward. (The ordinance applied only to employees working on the contract, not to all Cintas employees worldwide).

The case is Amaral v. Cintas Corporation and the opinion is here.