This gives the employer an unfair advantage in competing for their labor - one of many reasons wages have stagnated even as employment rates have gone up. A coffee shop barista, or any low-wage worker for that matter, should not fear retaliation just for moving to another job that’s better for them.”Īccording to Ferguson’s complaint, Mercurys’ non-compete agreements violated the Washington Consumer Protection Act, which prohibits companies from engaging in “unfair methods of competition.” Non-compete agreements limit low-wage workers’ options, mobility and ability to advocate for better pay and working conditions. “Any company that makes their employees sign unfair contracts should expect to hear from my office. “Non-compete agreements targeting low-wage, hourly employees give companies an unfair advantage at the expense of workers,” Ferguson said. Ferguson asserts that the company’s non-compete practices limited employment options and mobility for workers and unfairly limited competition for labor. Mercurys Coffee filed several lawsuits against workers who found employment at other coffee shops. This policy had the practical effect of preventing Mercurys baristas from working at most coffee shops in King County and parts of Snohomish County.įurthermore, the company enforced the agreements. The prohibition extended for eighteen months after leaving the company. These agreements prevented employees from working at any coffee shop within 10 miles of a Mercurys Coffee location. In addition, the company must pay $50,000 to reimburse the Attorney General’s Office for its attorneys fees and costs associated with the investigation.įor years, Mercurys Coffee required all employees - including low-wage, hourly workers - to sign restrictive non-compete agreements. Today’s announcement is the result of Ferguson’s investigation into Mercurys Coffee’s unfair use of non-compete agreements – the first of its kind for the Washington Attorney General’s Office.Īs a result of Ferguson’s action, the company cannot require hourly baristas to sign non-compete agreements. OLYMPIA - Attorney General Bob Ferguson today announced that King County coffee chain Mercurys Coffee will void all of its existing non-compete agreements. Mercurys Coffee required baristas to sign agreements barring employment at any coffee shop within a ten-mile radius of one of their locations
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