Solar Energy Company Solgen Power Violated Washington Non-Compete Law, Class Action Alleges

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class action lawsuit claims Solgen Power, LLC unlawfully requires workers to sign noncompetition agreements as a condition of employment and illegally prohibits employees from maintaining second jobs.

Want to stay in the loop on class actions that matter to you? Sign up for ClassAction.org’s free weekly newsletter here.

The nine-page lawsuit says that the solar energy company has run afoul of a Washington law that renders noncompetition covenants “void and unenforceable” for employees who made at or below $100,000 in 2020, or at or below the higher threshold amounts in subsequent years.

The suit also alleges that Solgen Power has violated state law by restricting workers who earn “less than twice the applicable state minimum wage” from having a second job.

The plaintiff, a Washington resident, was hired as a solar installation inspector in May 2022, the case shares. As a condition of the man’s employment, he was required by Solgen Power to sign an agreement that contained a noncompetition covenant barring him from providing services that would compete with the company for the duration of his employment plus an additional two years afterward, the complaint claims.

The plaintiff earned less than $100,000 per year during his employment, rendering his non-compete agreement void under Washington law, the filing contends.

The lawsuit argues that Solgen Power’s unlawful use of such non-competition covenants has a “chilling effect” on employees in that it “unreasonably” limits their ability to work, inhibits their economic growth and restricts workforce mobility.

“[Employees] are reluctant to seek additional employment due to the fear of being sued by [Solgen Power],” the suit claims. “Likewise, [workers] are reluctant to leave their employment with [the company] due to the broad post-employment restrictions in the noncompetition covenants.”

The lawsuit looks to represent any current or former Washington employees of Solgen Power who entered into a noncompetition covenant at any time since May 19, 2020 and whose annual earnings were less than $100,000 in 2020; less than $101,390 in 2021; less than $107,301.04 in 2022 and/or less than $116,593 in 2023.

Get class action lawsuit news sent to your inbox – sign up for ClassAction.org’s free weekly newsletter here.