In Amaral v. Cintas Corporation No. 2, a California court of appeal rejected Cintas' constitutional challenge to a City of Hayward living wage ordinance that applied to employees of city contractors who worked both in and outside the city. The court held that the ordinance constituted a lawful exercise by Hayward of extraterritorial power to contract, and otherwise passed constitutional muster. The court also observed that Cintas had the choice not to contract with the city if it found the minimum wage requirements too onerous.