„For example, if you`re a club in Florida with only one location and your non-compete clause prevents an employee from working outside of Florida — or having a job at a club somewhere — that would be too broad,” he said. „A judge will be inherently skeptical when it comes to limiting that person`s ability to work.” The lawsuit alleges that Orangetheory failed to notify its customers of their termination and other rights under the PFSA and instead charged customers two months of membership fees and even suggested that accounts that refused to pay be transferred to debt collection. The lawsuit alleges that Orangetheory violated the PFSA in a variety of ways, including: (1) failure to disclose the right to cancel within three days or to allow members to cancel within three days with a refund; and (2) require members to sign a termination form that conflicts with the original membership agreement. The applicant is seeking collective certification for several categories of consumers who have generally requested the cancellation of their gym membership and who have been denied refunds that have been forced to pay additional fees or whose accounts have been sent for collections. In addition, the lawsuit also files a lawsuit under Illinois consumer protection laws alleging that Orangetheory committed unfair or deceptive acts while attempting to enforce its cancellation policies and impose additional fees that may have conflicted with state law. Finally, the applicant brought a contractual action alleging that Orangetheory had breached its contracts by charging a cancellation fee in excess of the fees charged under the membership contract and by failing to provide pro-rated refunds to members who had terminated within the first three days of membership. Implementing non-compete obligations is one way to protect your customers from leaving if an employee decides to leave. In January, Club Industry reported that Life Time Fitness, Chanhassen, Minnesota, had sued one of its former regional vice presidents, Kyle Bauer, and his wife, both of whom reportedly signed a three-year non-compete agreement, for the opening of rival RenewYou gym in Houston. The case in U.S. District Court was settled on Sept.

20, according to court records. Non-compete obligations are legal in 49 states, but there are caveats, and those caveats vary from state to state, according to Boston-based law firm Beck Reed Riden LLP. The only exception is California, where all non-compete clauses are prohibited except in potential trade secret disputes. Q: „The gym where I really want to train and teach requires their independent contractors and employees to sign a non-compete clause. Do I have to sign it? Before joining, this plaintiff, Stuart Robertson, stated that he had viewed advertising material from Orangetheory indicating that new members were entitled to a „30-day money-back guarantee.” Subsequently, the applicant applied for a membership of $129 per month, stating that the language of the membership agreement allowed for termination with 30 days` notice (less a pro-rated refund). The applicant also stated that he did not receive a copy of his contract as required by the PFSA. The contract originally signed, Robertson said, also allowed for a partial refund if it canceled within three days. However, a few days after his membership and did not feel the burn, the applicant told the gym that he wanted to cancel his membership, but was apparently told that he would have to sign a separate termination agreement in which he would agree to pay for two months (a representative reportedly told him that even if he had registered on the same day, on which he had joined, would have resigned, he would have been charged for the second month). In addition, Robertson claimed that after refusing to sign the cancellation form and told the agent that he would ask his credit card to block all future Orangetheory fees, he was told there would be „other consequences” if he did not pay the remaining fees. Members often join a fitness club for a coach to attract another set of burpees to them with some capricious encouragement, but in this case, the plaintiff was left particularly depressed and decided to immediately run to his attorney`s office. Michele Olson, Ph.D., professor of exercise physiology at Auburn University in Montgomery, agrees. „I once signed an optional non-compete clause with a new fitness center with wonderful equipment and studios.

However, they paid the best dollars and provided $200 worth of CEC money each year as an incentive for those who agreed to sign it. „Club owners who are concerned about deterring quality employees because of a non-competition clause should consider having employees sign confidentiality and non-solicitation agreements that offer protection similar to non-compete obligations. Vogel says she signed it because she enjoys teaching at the women-only facility, and that the clause had a deadline that allowed her to re-evaluate the agreement later when she was no longer satisfied with the agreement. While English common law originally rendered this level of restriction unenforceable, contemporary case law provides for exceptions, but will generally apply this type of contract only to the extent necessary to protect the employer. Most jurisdictions in which such contracts have been reviewed by the courts have held that NQFs are legally binding as long as the clause contains reasonable restrictions on the geographical area and the period during which an employee of a company is not allowed to compete. For example, what if your gym owner lets the facility expire and there is a mass exodus of members to the gym in town? If you have signed a non-compete agreement stating that you cannot exercise at another facility within X miles and X years of leaving the facility, you will not be able to follow your customers to that other gym, even if the old location is no longer desirable for members or for yourself. Steinmeyer encouraged any club owner considering a non-compete clause to consider the day his lawyer rises in court and defends the document. Lawyers say that non-compete obligations must be formulated specifically and may not be entirely necessary when alternatives are used. (Photo by Thinkstock.) Non-compete obligations can help protect a company`s most sensitive information, such as business practices, intellectual property and financial investments in employees, Steinmeyer said. If a club owner requires a non-compete clause from their employees, the employer should offer attractive opportunities for staff to reach their full potential, Healey said. The extent to which non-compete obligations are permitted by law varies by jurisdiction.

Some jurisdictions, such as the State of California, invalidate non-compete clauses for all corporate stakeholders except shareholders. These and other examples have led some club operators to consider non-compete obligations for workers, although there are no documents proving whether more non-compete obligations are required today than in the past. .