(COLORADO) — An agreement was reached to end unfair labor practices at oil change and auto services company, Valvoine LLC, Valvoline Instant Oil Change Franchising Inc, and VGP Holidings LLC. Colorado Attorney General Phil Weiser and a coalition of six attorneys general announced the agreement on Wednesday, July 31.

According to the attorney general, Valvoline required its hourly employees to sign non-competition agreements that barred 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.

Valvoline also mandated that its hourly employees sign non-solicitation agreements, which prohibited them from soliciting current Valvoline employees or customers for one year after their employment ended.

Non-compete agreements are widespread in the workforce. These unfair agreements keep wages low, place an undue burden on workers, and significantly reduce their future job prospects. In Colorado, we are committed to protecting workers and fighting for fair treatment for all. Today’s agreement provides security that Valvoline employees will not be subject to such restrictive employment conditions going forward.

Colorado Attorney General Phil Weiser

Under the agreement, within 15 days, Valvoline will notify all current employees and former employees who left within the past year, that the non-competition and non-solicitation agreements are void.

According to the Attorney General, this settlement will benefit 440 current employees and 500 former employees across the coalition states. The agreement covers all locations in Colorado, including one in Colorado Springs and three in Pueblo.

If Valvoline significantly breaches the agreement in any coalition state, that state’s attorney general can pursue a $500,000 penalty.