Hair Salon Non Compete and Unlawful Deductions
Maria was a hair stylist employed by a salon that was part of a regional chain. She had a dream of opening her own salon, and was saving money to do so.
This was made more difficult by the fact that her employer had a practice of deducting a "product charge" from the commissions due for each customer. This amount was deducted to cover the salon's cost of purchasing products used in serving customers. She did not know if she had a non compete agreement, but did some research about restrictive covenants in the hair salon industry. In her research, she learned that the standard geographic area for non compete agreements in her industry was three miles. Armed with that information, she found a location four miles from her employer and signed a lease. When she gave her notice, her employer threatened her with a lawsuit based on an employment agreement she had signed with a covenant not to compete that restricted her for a five mile radius, not the three mile radius she had believed to be the case. Maria was in a tough spot. She had already signed the lease and invested in the equipment she needed to start her business. What's more, she had tried to do the right thing by finding a location outside what she thought the restriction was. And yet her former employer, who had greater resources than her, was threatening to block her and make her start all over someplace new. |
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Non Compete Solution
We helped Maria fill out a complaint with the Massachusetts Attorney General about the wage deductions. Once she received her right to sue letter, we brought a complaint in court seeking damages as well as a declaratory judgment that her non compete was unenforceable.
With respect to the non compete, we argued that the employer had no legitimate business interests to protect, and that Maria had no trade secrets or confidential information. In addition, most of her clients had followed her from a previous job, making it questionable whether the employer had any goodwill interest in those clients.
In addition, we argued that the agreement was unenforceable because of the unlawful wage deductions, and that the employer should pay her triple damages under the Wage Act for those deductions. The employer moved for summary judgment on this issue, arguing that it was legitimate to deduct product charges from commissioned employees.
After the court denied their motion for summary judgment, we were able to resolve the case. Maria was paid for the deductions, and allowed to continue with her new business.
With respect to the non compete, we argued that the employer had no legitimate business interests to protect, and that Maria had no trade secrets or confidential information. In addition, most of her clients had followed her from a previous job, making it questionable whether the employer had any goodwill interest in those clients.
In addition, we argued that the agreement was unenforceable because of the unlawful wage deductions, and that the employer should pay her triple damages under the Wage Act for those deductions. The employer moved for summary judgment on this issue, arguing that it was legitimate to deduct product charges from commissioned employees.
After the court denied their motion for summary judgment, we were able to resolve the case. Maria was paid for the deductions, and allowed to continue with her new business.
Postscript
Maria was able to continue her business and enjoy the freedom and flexibility to do what she loves doing, spend time with her twin daughters, and make the living she needed to support herself and them.
If you are in a similar position, remember that in addition to the usual defenses to a non compete, it is a good idea to review your compensation with an employment attorney to find out if you are owed money under the Wage Act. This can result in getting you properly compensated, as well as providing leverage to help you get out from under an unreasonable non compete restriction.
If you are in a similar position, remember that in addition to the usual defenses to a non compete, it is a good idea to review your compensation with an employment attorney to find out if you are owed money under the Wage Act. This can result in getting you properly compensated, as well as providing leverage to help you get out from under an unreasonable non compete restriction.
How Our Non Compete Lawyers Can Help
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We have years of experience representing people in non compete lawsuits in Massachusetts state and federal courts, as well as responding to cease and desist letters, and we would be happy to help. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.
