Cintas recently settled a class action suit for $6.5 million that alleged it violated the Living Wage Ordinance in the City of Los Angeles. Over 500 Cintas workers, represented by Workers/United SEIU, a union that represents 70 percent of California’s laundry workers, are slated to receive overdue back wages. In the settlement $3.3 million will be going towards worker back wages and interest and an additional $250,000 will be paid as penalties. Additionally, Cintas will pay over $2.6 million in legal fees for the class action suit which was initially filed in 2004.
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Gulf Coast Laundry Acquired by Swisher Hygine
CHARLOTTE, N.C. — Swisher Hygiene Inc., a provider of hygiene and sanitation products and services, announced that it acquired Gulf Coast Laundry Services of Mississippi, LLC (“Gulf Coast Laundry Services”), a Mississippibased linen services company.
Gulf Coast Laundry Services provides linen rental and laundry services throughout southern Mississippi, Louisiana and Alabama, primarily to hotel, casino and resort customers. Concurrent with the acquisition, the founder of Gulf Coast Laundry Services, David Gross, will join Swisher Hygiene and contribute to the continued growth of its linen services business.
Total consideration paid by Swisher Hygiene in connection with the acquisition includes approximately $4.8 million in cash and the issuance of a convertible promissory note which may be converted into a maximum of 350,000 shares of Swisher Hygiene common stock subject to certain restrictions, including acceptance by the Toronto Stock Exchange.