Cintas Contract Lawsuit

Cintas Corporation is a renowned provider of corporate identity uniform programs, entrance mats, restroom supplies, and safety products. The company is based in Cincinnati, Ohio, and has operations in over 400 locations across North America, Europe, and Asia. In recent years, Cintas has made headlines due to a high-profile contract lawsuit.

The lawsuit was filed back in 2004 by a group of former Cintas sales representatives who claimed that the company unfairly deprived them of long-term income based on a contract that was unwritten. According to the representatives, Cintas required them to sign a non-compete agreement, which stated that they were not to use any of the company`s confidential information for their own benefit or that of another company.

The lawsuit alleged that Cintas then terminated their employment without paying the representatives the income they would have earned if they had continued working and had not been forced to sign the non-compete agreement. The representatives claimed that Cintas had breached an implied contract with them, and, as a result, they were entitled to damages as a form of compensation.

The case went to trial in 2011, and a jury ruled in favor of the former sales representatives. Cintas was ordered to pay a total of $2.78 million in damages to the plaintiffs. However, the company appealed the decision, and the case was eventually settled out of court in 2012 for an undisclosed amount.

The Cintas contract lawsuit is a cautionary tale for companies that require their employees to sign non-compete agreements. While such agreements can be useful for protecting a company`s trade secrets and other confidential information, they must be drafted and executed with care. In the case of Cintas, the non-compete agreement was deemed too broad and therefore unenforceable by the court, leading to a significant financial loss for the company.

In conclusion, the Cintas contract lawsuit serves as an important reminder that companies must be vigilant when drafting and executing non-compete agreements. It is important to consult with an experienced lawyer who specializes in employment law to ensure that the agreement is legally valid, specific, and reasonable. By doing so, companies can avoid costly lawsuits and protect their valuable business assets.