Cintas settles with drivers for $22.75 million Lawsuit

Cintas Corp., the nation's largest uniform provider, has agreed to pay $22.75 million to settle a lawsuit by delivery drivers who challenged the company's refusal to pay them overtime.

Details of the settlement, including how many drivers it covers and how much they will receive, will be determined in discussions overseen by a federal magistrate in San Jose. The agreement, which was announced Thursday, is subject to court approval. That could take several months.

Eileen Goldsmith, a lawyer for the drivers, said at least 2,000 employees have joined the suit since it was filed in 2003 and likely would be eligible for a share of the money.

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"We're very pleased that we're going to be able to get some relief for these people after a very long and challenging case," she said.

Cintas CEO Scott Farmer said in a statement that the company still believes the suit was unfounded "but decided to resolve the claims through mediation to avoid the additional expense of protracted litigation."

The drivers pick up dirty uniforms and deliver clean ones to the customers of Cintas, a Cincinnati company that operates more than 400 facilities in the United States and Canada. The company reported $3.9 billion in sales last year.

Federal law requires such companies to pay overtime to employees working more than 40 hours a week, but exempts many categories of commercial drivers. The suit accused Cintas of misclassifying the drivers as exempt and sought compensation for unpaid wages dating back to March 2000.

The case has been tied up for years in disputes over the scope of agreements signed by most of the drivers to take their grievances to arbitration. Many drivers have also sued under the laws of the states where they live.

The case has also become an issue in union attempts to gain the right to represent Cintas drivers. Cintas alleged that the suit was part of an effort by unions to pressure the company into allowing unionization without an election.

Workers United, a laundry workers' unit of the Service Employees International Union that has been trying to organize Cintas production workers, praised the settlement.

"After six long years of delay tactics and needles posturing by Cintas, drivers will finally receive just compensation for overtime work," said Workers United's president, Bruce Raynor.