Attorney General Raoul reaches settlement with Valvoline over use of non-compete agreements
Chicago – Attorney General Kwame Raoul, along with six other attorneys general, announced a settlement to resolve allegations of unfair labor practices at oil change and auto services company Valvoline LLC, Valvoline Instant Oil Change Franchising Inc., and VGP Holdings LLC (Valvoline).
Raoul and the attorneys general allege that Valvoline required its hourly employees to sign non-competition agreements that prohibited them from working in the oil change business at any store within 100 miles of a Valvoline location for one year after leaving the company. Additionally, Valvoline required its hourly employees to sign non-solicitation agreements that forbade them from soliciting current Valvoline employees or customers for one year after their employment ended.
“Valvoline’s unfair use of non-compete agreements restricted workers from future employment opportunities and limited financial growth for many families,” Raoul said. “These agreements are simply anti-worker, and I will continue to advocate for removing these unlawful career obstacles placed before workers in Illinois and across the nation.”
Under the settlement, Valvoline has stopped requiring these workers to sign non-competition agreements and must notify all current and former employees who would have been impacted by the agreements within 15 days that they are no longer in effect. If Valvoline materially violates the terms of the agreement in any of the states included in the coalition, the attorney general of that state can seek a $500,000 penalty.
The settlement is estimated to benefit 440 current and 500 former employees throughout the states included in the coalition.
Joining Raoul in announcing the settlement are the attorneys general of Colorado, Maryland, Massachusetts, Minnesota, New York, and Pennsylvania.