Valvoline LLC, along with its subsidiaries Valvoline Instant Oil Change Franchising Inc. and VGP Holdings LLC, has agreed to end unfair labor practices following a settlement with a multistate coalition led by New York Attorney General Letitia James. The settlement addresses the company’s requirement for hourly employees to sign non-competition and non-solicitation agreements that restricted their future job opportunities.
In New York, it’s illegal for companies to impose non-competition agreements that cause undue hardship on employees because these agreements unfairly restrict workers’ ability to find new jobs in their field. This is especially true for hourly jobs and jobs that do not require specialized skills or training.
Valvoline mandated that nearly 150 current and former hourly employees in New York sign agreements prohibiting them from working in the oil change business at any store within 100 miles of their Valvoline location for one year after leaving the company.
These agreements also prevented employees from soliciting current Valvoline employees or customers for one year post-employment. Such restrictions placed an undue burden on workers, limiting their ability to find new employment within their field of expertise.
By prohibiting nearly 150 current and former hourly employees from working in the oil change business within 100 miles of their Valvoline location for a year and from soliciting current employees or customers, Valvoline severely limited their future employment opportunities. New York law requires that such agreements be reasonable and not overly restrictive in terms of time and geographic scope, ensuring workers can pursue their careers without unnecessary obstacles.
“When major companies threaten employees, they hurt all hardworking New Yorkers and their families,” said Attorney General James. “For years, Valvoline took advantage of hourly workers who did not have the negotiating power to challenge these unjust labor agreements. We will not let companies prevent everyday people from earning a fair wage and putting food on the table.”
Under the terms of the settlement, Valvoline has ceased requiring workers to sign these agreements and will notify current and former employees that the agreements are no longer in effect. If Valvoline violates the settlement, the attorney general of any of the coalition states can seek a $500,000 penalty.
Attorney General James: ‘Valvoline took advantage of hourly workers’
The investigation, which began in 2018, revealed that Valvoline used non-competition provisions that precluded all hourly employees from working in the automotive lubricants or quick lube business within 100 miles of their former worksite for one year after leaving the company.
Additionally, employees were prohibited from soliciting, hiring, or employing any Valvoline employees or taking away any Valvoline customers they had a business relationship with for one year post-employment. Hourly employees were required to sign these agreements to secure their jobs.
Valvoline continued using these agreements until 2021, despite the investigation. New York law prohibits employers from imposing non-competition agreements that cause undue hardship on employees and requires such agreements to be reasonably limited in time and location.
The settlement benefits approximately 440 current employees and 500 former employees across the coalition states, including 80 current and 68 former employees in New York. Valvoline will issue notices within 15 days to inform all current and recently former employees that the non-competition and non-solicitation agreements are void.
Joining Attorney General James in the settlement were the attorneys general of Minnesota, Colorado, Illinois, Maryland, Massachusetts and Pennsylvania.
This settlement is part of Attorney General James’s ongoing effort to protect workers’ rights and eliminate unlawful employment practices. Her recent actions include ending the use of no-poach agreements by major commercial underwriters and securing significant settlements to reimburse workers from companies like Uber and Lyft.
