meta Non-competes “unenforceable” for A.I. techs – Washington Court Rules :: The Bullvine - The Dairy Information You Want To Know When You Need It

Non-competes “unenforceable” for A.I. techs – Washington Court Rules


A U.S. District Judge ruled in favor of four A.I. technicians who left Genex Cooperative, Inc., but inseminated cows on the same farms for CRV USA the very next day.

Genex sued the A.I. technicians after losing business, asking the court to uphold documents and rights they felt should be enforced:

  • Three of the defendants had signed non-compete agreements
  • Two of the defendants had non-solicitation convenants
  • Genex charged all defendants with “tortious interference of contractual obligations.”

But the A.I. technicians counterclaimed that Genex had violated state wage laws during their employment with the company.

According to court documents, Genex changed compensation and commission rates dealing with sales and service in 2011, and the technicians in the four A.I. technicians from Sunnyside, Wash., area disliked the new system. In counter to the Genex claims, the technicians said that they did not have enough, or any, days off, while their workload increased when other members of their breeding program specialist team left for other A.I. firms, nor sufficient meal and/or rest breaks.

On December 12, 2012, the four A.I. technicians signed identical letters of resignation and sent them to Genex. They were hired by CRV to begin work the next day, completely eliminating Genex’ presence in the area.

The judge refused to enforce any of the non-compete agreements and non-solicitation covenants due to either illegal terms in the agreements, as methods to eliminate competition, and/or “to strong-arm its employees to accept ever-dwindling wages and restrict their freedom to work.”

The judge also ruled that most of the defendants’ counter-claims will be allowed to continue.

A representative for CRV USA declined to comment. A  Thursday request for comment to Genex Cooperative, Inc., has not been returned.


Send this to a friend