The investigation, which began in 2018, revealed that Valvoline’s use of these agreements persisted until 2021. New York law prohibits non-competition clauses that unduly burden employees, mandating that such agreements be reasonable in both time and geographic scope.
In a significant labor rights victory, New York Attorney General Letitia James, alongside a coalition of six other state attorneys general, has reached a settlement with Valvoline LLC, Valvoline Instant Oil Change Franchising Inc., and VGP Holdings LLC. This settlement addresses the company's unfair labor practices that affected hourly employees across several states, including New York.
Valvoline had been requiring its hourly employees—about 150 of whom were current or former workers in New York—to sign restrictive non-competition and non-solicitation agreements. These agreements barred employees from working in the automotive oil change industry within a 100-mile radius of their Valvoline location for a year after leaving the company. They also prevented former employees from soliciting current Valvoline staff or customers for the same duration.
The settlement stipulates that Valvoline must cease enforcing these agreements and notify all affected employees that the agreements are now void. Should Valvoline breach the settlement terms in any participating state, the state's Attorney General can impose a penalty of up to $500,000.
Attorney General James emphasized the impact of these agreements on workers, stating, “When major companies threaten employees, they hurt all hardworking New Yorkers and their families. 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.”
The investigation, which began in 2018, revealed that Valvoline’s use of these agreements persisted until 2021. New York law prohibits non-competition clauses that unduly burden employees, mandating that such agreements be reasonable in both time and geographic scope.
Under the settlement, Valvoline will notify current and former employees—totaling 440 current and 500 former workers across the coalition states, including 80 current and 68 former employees in New York—within 15 days that these restrictive agreements are no longer in effect.
The coalition included attorneys general from Minnesota, Colorado, Illinois, Maryland, Massachusetts, and Pennsylvania.
Attorney General James has a track record of tackling unlawful employment practices, previously ending no-poach agreements by major commercial underwriters and securing substantial financial settlements for workers cheated by Uber and Lyft. The current matter was managed by Assistant Attorneys General Lawrence Reina and Jessica Agarwal, along with Civil Enforcement Section Chief Fiona Kaye, under the supervision of Deputy Bureau Chief Young Lee and Bureau Chief Karen Cacace.
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