The Cintas 401(k) settlement is a $4 million agreement, finalized in February 2025, resolving claims that Cintas Corporation mismanaged its Partners’ Plan by charging excessive recordkeeping fees and offering only higher-cost actively managed funds. The deal in Hawkins v. Cintas Corporation (No. 1:19-cv-01062) covered more than 52,000 current and former plan participants, and payments went out automatically. No claim form was required.1Bloomberg Law. Cintas Workers Finalize $4 Million 401(k) Plan Fee Settlement
Who Was Covered
The class included everyone who participated in the Cintas Partners’ Plan at any point between December 13, 2013, and April 19, 2024. Beneficiaries of deceased participants and alternate payees (for example, ex-spouses receiving benefits under a domestic relations order) were also included.1Bloomberg Law. Cintas Workers Finalize $4 Million 401(k) Plan Fee Settlement
The court certified the case as a non-opt-out class under Federal Rule of Civil Procedure 23(b)(1). That meant class members could not exclude themselves, and objections from the class were minimal: only four people objected, one of them late.2Govinfo.gov. Hawkins et al. v. Cintas Corporation et al., Final Approval Order
How Payments Were Calculated and Sent
Individual payments came from the Net Settlement Amount, which is the $4 million fund minus taxes, administrative costs, attorney fees, and service awards to the named plaintiffs. Each class member’s share was calculated pro rata, based on the sum of their account balances on December 13, 2013, and on December 31 of each year through 2023. For anyone who cashed out before the end of 2023, the last quarterly statement balance was used instead.3Retirement Plan Settlement. Cintas Settlement Notice
Larger cumulative balances produced larger payments. Anyone whose calculated share came to less than $10 was rounded up to a $10 minimum. Current plan participants had funds deposited directly into their plan accounts. Former participants received checks mailed by the settlement administrator.3Retirement Plan Settlement. Cintas Settlement Notice
What the Lawsuit Claimed
The named plaintiffs sued Cintas, its Investment Policy Committee, and its Board of Directors in December 2019 under Section 502(a)(2) of the Employee Retirement Income Security Act (ERISA). They said the fiduciaries breached their duties of loyalty and prudence in two ways.4United States Court of Appeals for the Sixth Circuit. Hawkins v. Cintas Corp., No. 21-3156
First, the plan’s investment lineup consisted entirely of actively managed funds, which carry higher fees than passively managed index funds. The challenged funds came from T. Rowe Price, PIMCO, Artisan, and Dodge & Cox.5BenefitsLink. Hawkins v. Cintas Corp. Complaint Second, the plaintiffs said recordkeeping fees were too high, arguing Cintas could have obtained those services for about $23 to $28 per participant per year. On that theory alone, damages ranged from $11.6 million to $13.3 million.6ASPPA Net. Cintas Settles $4 Million 401(k) Excessive Fee Suit
Why the Case Survived Cintas’s Arbitration Push
Cintas tried to get the case out of court by pointing to arbitration clauses and class-action waivers in its individual employment agreements. The district court refused to compel arbitration, and on April 27, 2022, the Sixth Circuit affirmed. Because ERISA Section 502(a)(2) claims are brought on behalf of the plan itself, and the plan had never agreed to arbitrate, the employees’ personal contracts could not force the case into arbitration.4United States Court of Appeals for the Sixth Circuit. Hawkins v. Cintas Corp., No. 21-3156 The Supreme Court denied review on January 9, 2023, and the case moved back to the district court.7Law360. Cintas Corporation v. Hawkins, Case Articles
Court Approval, Fees, and Awards
Judge Jeffery P. Hopkins of the U.S. District Court for the Southern District of Ohio granted final approval on August 27, 2024. He found the settlement “fair, reasonable, and adequate,” noting the $4 million was roughly 30 to 34 percent of the plaintiffs’ best-case damages estimate and that recent Sixth Circuit precedent had increased the litigation risk on the investment-option claims.2Govinfo.gov. Hawkins et al. v. Cintas Corporation et al., Final Approval Order
On February 18, 2025, the court approved the following deductions from the settlement fund:
- $1,333,200 in attorney fees (one-third of the fund) to class counsel Capozzi Adler PC and Connick Law LLC.
- $24,964.50 in expense reimbursement to class counsel.
- $3,500 service awards to each of the twelve named plaintiffs, totaling $42,000.8Justia. Hawkins et al v. Cintas Corporation et al, Doc. 95
Changes to the Plan Going Forward
Beyond the cash payment, Cintas agreed to run a request-for-proposal process for the plan’s recordkeeping services within three to five years of the settlement’s effective date, unless it had already done so. The provision was aimed at the excessive-fee allegations by requiring competitive bidding for the recordkeeper role.9Retirement Plan Settlement. Memorandum in Support of Final Approval Alight Solutions was the recordkeeper as of Cintas’s most recent annual plan filing for fiscal year 2023.10U.S. Securities and Exchange Commission. Cintas Partners Plan Form 11-K, December 31, 2023
If You Have Questions About Your Payment
The settlement administrator is Analytics Consulting LLC. The official website is retirementplansettlement.com, and the toll-free line is (888) 734-3755. Class counsel can be reached at settlement@capozziadler.com with “Cintas Settlement” in the subject line.11Retirement Plan Settlement. Contact Us