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Judge Rules SF Company Owes $1.34 Million For Violating Health Care Laws

SAN FRANCISCO (KCBS)—A San Francisco Superior Court judge ordered a janitorial company on Wednesday to pay $1.34 million to 275 workers who didn't receive health benefits required by city law.

Judge Marla Miller ruled that GMG Janitorial Inc., a company based in the City's Bayview District, owes its present and former employees $1,339,028 because the company did not comply with San Francisco's health care law, passed in 2006, that requires employers to cover some of the workers health care expenses.

Judge Rules That San Francisco Company Violated City's Health Care Laws; Owes Workers $1.34 Million

Workers said they were led to believe they had no coverage and, as a result, didn't seek out medical care when it was needed.

"Janitorial workers came to the city's Office of Labor Standards Enforcement and reported that they were provided no health care benefits by their employer," Donna Levitt, Manager of the Office Standards, said.

The city's investigation found that GMG Janitorial was out of compliance with the Healthy San Francisco Law but the company sued. Now, over one year later, a superior court judge affirmed the city's position.

"This is more than a mere accounting error. It appears to have been a purposeful attempt to evade the law to a degree which is very significant" City Attorney Dennis Herrera said. The ruling sends an important message that we are going to make sure that people comply with the law and it's particular telling that the court was so strong in its ruling,"

(Copyright 2013 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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