As another year comes a close, it is always time to reflect back and give thanks. We are privileged to be a part of the towing community and am extremely grateful for the friendships and opportunities this industry has provided. We wish everyone and their families a safe and happy holiday.
When it comes to the tow business, the answer is…it depends. I would say as a general rule, courts disfavor “restrictive covenants” in the workplace. A restrictive covenant is, by definition, something that restricts another from doing something. A covenant not to compete is one example of a restrictive covenant. Typically, they are introduced at the inception of one’s employment and, as a condition of accepting employment, the prospective employee agrees to a number of post-employment conditions, such as non-competing with the company, not soliciting the company’s customers, and otherwise not using the customer’s confidential information.
Cities throughout the United States receive incentives for doing business with a minority-owned or woman-owned business. This includes minority-owned or woman-owned tow businesses. The law defines these types of businesses as socially and/or economically disadvantaged. So what does this mean for a tow business?