WinCo and Subcontractor Face Class-Action Suit Over Alleged Janitor Misclassification

Lawsuit Alleges WinCo and Subcontractor Misclassified Janitors, Denied Basic Protections

Three janitors who cleaned WinCo Foods supermarkets have filed a proposed class-action suit in Los Angeles County Superior Court, alleging the retailer and its cleaning subcontractor TEC Services systematically violated California labor laws. The suit, backed by a year-long investigation by watchdog group Maintenance Cooperation Trust Fund, claims the janitors were misclassified as independent contractors rather than employees, denying them minimum wage, overtime, sick leave, and meal and rest breaks.

The plaintiffs—Rita Delgadillo, Efigenia Preciado, and Gloria Flores—state they regularly worked beyond scheduled hours to finish assigned tasks but were paid only for those scheduled hours, receiving no itemized wage statements. Instead, they got biweekly direct deposits without any pay stubs showing gross wages, hours worked, or employer details. The law firm Wiener, Roger & Rosenfeld seeks to represent all janitors who worked at WinCo stores in California during the past four years, estimating at least 40 class members in Southern California alone, with more statewide.

Under California’s “ABC test,” workers are presumed to be employees unless the hiring entity proves otherwise. The suit argues that because WinCo and TEC exercised significant control over the janitors’ work—it was part of the companies’ routine business and the workers did not offer similar services to others—they do not qualify as independent contractors. WinCo, based in Boise, Idaho, operates 145 warehouse-style supermarkets, including 37 in California. TEC Services provides janitorial services for over 1,000 supermarkets nationally. Neither company responded to requests for comment.

What the Case Means for WinCo and the Supermarket Subcontracting Model

The ABC Test and Joint-Employer Exposure

The core legal claim turns on California’s strict independent-contractor rules. Because TEC controlled scheduling, tasks, and performance standards—and because the cleaning services are integral to WinCo’s business—the workers likely meet the threshold for employee status. This exposes both WinCo and TEC to liability for unpaid wages, overtime, and statutory penalties. The suit’s requested class certification would cover hundreds of hours of alleged underpayment, potentially leading to a seven-figure settlement or judgment.

Why the Subcontracting Model Matters

Grocery chains commonly outsource janitorial work to trim costs and sidestep direct employment obligations. However, lawsuits like this challenge that cost advantage if courts find the retailer retains enough oversight to be a joint employer. WinCo already faced a similar suit earlier this year in Clark County, Washington, alleging meal and rest break violations. That pattern amplifies the legal vulnerability for WinCo—and by extension, for other retailers using comparable subcontracting models.

Reputation and Operational Fallout

WinCo’s brand rests on low prices and lean operations; a finding that it shortchanged its own cleaning staff could erode its employee-friendly image, even though the janitors were not direct hires. For TEC, which services more than 1,000 supermarkets, a class action could raise costs across its client base if other workers or regulators take note. While the financial impact to WinCo alone is manageable, the case adds to a broader pressure on retailers to audit indirect labor arrangements.

Immediate Priorities for Retailers and Facility Service Providers

For retailers and facility service providers, the lawsuit offers immediate lessons:

• Reassess subcontractor classification. Apply the California ABC test (or your state’s equivalent) to any cleaning, security, or maintenance subcontractors. If the company dictates schedules, tasks, or tools, the workers likely qualify as employees—regardless of the contract language.
• Ensure compliant wage statements. Even if a subcontractor handles payroll, joint-employer liability can arise if workers never receive itemized stubs. Retailers should demand that subcontractors provide detailed pay records and verify compliance.
• Prepare for potential class certification. With a minimum of 40 putative class members, the WinCo suit stands a decent chance of being certified. Companies facing similar claims should model potential exposure based on hourly rates and penalties to inform settlement decisions.
• Monitor the Washington case. WinCo’s earlier suit in Clark County suggests a pattern that could attract more coordinated legal action. Counsel should track its outcome for insights into settlement ranges and joint-employer arguments.