Unlawful non-compete agreements spark new legal battle between Teamsters local 357 and republic airways

Thursday, April 4, 2024

Teamsters Local 357 has initiated a second legal action against Republic Airways in the Marion County Superior Court, challenging a mandatory employment agreement for the airline’s pilots. This agreement, criticized for containing illegal non-compete clauses, was allegedly presented under the misleading guise of being either a “bonus” or an “incentive” pact. It obliges pilots to remain with Republic Airways for at least two years, failing which they must compensate the airline with $100,000 and face a prohibition from flying professionally for up to one year. Furthermore, the lawsuit accuses Republic Airways of unlawfully dismissing a pilot and then insisting on the non-compete clause’s penalties, including a $100,000 fine and additional charges nearing $28,000 for training and accommodation expenses, coupled with legal threats should he seek employment with rival airlines. While Republic Airways has sought to transfer the case to another jurisdiction, a preliminary hearing is scheduled for April 5 with Superior Court Judge John F. Hanley presiding. Teamsters Local 357 acts as the representative body for flight deck crew members at Republic Airways.

“We want Republic Airways to be competitive and successful, but it is wrong for the company to seek a competitive advantage by exploiting young pilots who are eager to establish their career and fly professionally,” said Anthony Campo, President of Teamsters Local 357 and a Republic Airways pilot.

“No matter what label the company slaps on these documents, the fact remains that [it] opts for the proverbial stick, while telling pilots it’s a carrot,” the lawsuit stated. “That is not competition, and it certainly does not benefit the public interest.”

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