Oil change titan Valvoline has been brought to heel over its use of non-compete clauses, which have been deemed unfair to its hourly workers, following a multi-state settlement spearheaded by Attorney General Kwame Raoul. The settlement, announced Wednesday, concludes aggressive moves by Raoul and six other attorneys general against Valvoline LLC, Valvoline Instant Oil Change Franchising Inc., and VGP Holdings LLC—a suite of entities functioning under the Valvoline brand.
As reported earlier, the attorneys general collectively challenged the company's practice of requiring its hourly wage earners to commit to non-compete and non-solicitation agreements, which not only barred them from joining competitors within a 100-mile radius for a year post-employment but also from poaching employees or customers from Valvoline—these restrictions were labeled as blatant inhibitors to workers' employment prospects and familial economic advancement.
"Valvoline's unfair use of non-compete agreements restricted workers from future employment opportunities and limited financial growth for many families," Raoul affirmed in the announcement. Valvoline has now consented to discontinue these contracts and is obliged to notify impacted staff, both current and past, within 15 days that these constraints have been lifted. Failure to uphold this agreement may lead to a steep $500,000 penalty, enforceable by the attorney general in any of the represented states.
The impact of the settlement stretches to an estimated 440 current and 500 former employees across the participating states, bringing relief and opening new job prospects for hundreds. Besides Illinois, the resolve includes a coalition with attorneys general from Colorado, Maryland, Massachusetts, Minnesota, New York, and Pennsylvania, all working collaboratively to disassemble barriers through anti-worker, according to the terms set down in the settlement. Each state now stands as vigilant watchmen over Valvoline's compliance, ready to implement punitive measures should the company stray from the paths newly forged.
