Lawsuit Says Cintas Defrauded U.S.

As The Cincinnati Enquirer today trumpets Jungle Jim’s victory in Cintas Corp.’s 2007 "America’s Best Restroom Award" contest, Cintas is facing more serious allegations in a federal lawsuit filed by a labor union.

In a lawsuit that was unsealed today, Unite Here — a garment and textiles union that is trying to organize in many Cintas facilities nationwide — alleges the company defrauded the federal government in the performance of several service contracts.

The lawsuit states that Cintas knowingly submitted falsified documents with the government in order to obtain millions of dollars in payment under the contracts. The suit alleges that Cintas fraudulently represented to the United States that it provides employees working under the contracts the full measure of wages, benefits, vacation and holidays required by the federal Service Contract Act.

Cintas denies the allegations.

Cintas holds about 30 federal contracts to supply uniforms, mats, cleaning supplies and document shredding services to government agencies, including the Defense Department, the Interior Department and the Department of Veterans Affairs.

Unite Here filed suit under the False Claims Act, which allows private citizens and organizations to help the United States recover money lost through false and fraudulent claims made by government contractors. In the past, successful suits have been filed stemming from fraud in defense and Medicare contracts, which resulted in the recovery of billions of dollars by the U.S. government.

Union leaders said they became aware of the violations of the False Claims Act while working with Cintas employees to form a union and improve their working conditions. The suit was filed in the Northern District Court of California.

Last week, national workplace safety regulators proposed an unprecedented $2.78 million fine against Cintas for violations that led to the death of a worker at a company laundry in Tulsa, Okla. Cintas can appeal the fine recommended by the U.S. Occupational Safety and Health Administration (OSHA) but, if upheld, the penalty will be the largest fine ever issued in the service sector for health and safety violations.

Safety inspectors reported 46 illegal hazards in the Tulsa laundry— including 42 “willful” violations. At least one citation was for not protecting workers from the type of equipment that was involved in Eleazar Torres-Gomez’s death in March.

Based in Mason, Cintas is the largest uniform supplier in North America. In 2006 the company reported sales of $3.4 billion, an 11 percent increase from its previous year’s revenue of $3.07 billion.

— Kevin Osborne
(Photo: Gijobs.net)

Comments

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