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Utah Settlement Cancels $16,758,262 in Snap Finance Lease Payments
SALT LAKE CITY, Utah, Oct. 23 -- Utah Attorney General Derek Brown issued the following news:
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Utah settlement cancels $16,758,262 in Snap Finance lease payments
Utah Attorney General Derek Brown and the Utah Department of Commerce's Division of Consumer Protection join 16 other states in a $665 million settlement with Snap Finance
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SALT LAKE CITY, Utah -- Utah and 16 other states joined the $665 million multistate settlement with Snap Finance. The settlement cancels $16,758,262 in lease payments owed by Utah consumers. Utahns who signed Snap lease-to-own agreements from 2017 through
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SALT LAKE CITY, Utah, Oct. 23 -- Utah Attorney General Derek Brown issued the following news:
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Utah settlement cancels $16,758,262 in Snap Finance lease payments
Utah Attorney General Derek Brown and the Utah Department of Commerce's Division of Consumer Protection join 16 other states in a $665 million settlement with Snap Finance
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SALT LAKE CITY, Utah -- Utah and 16 other states joined the $665 million multistate settlement with Snap Finance. The settlement cancels $16,758,262 in lease payments owed by Utah consumers. Utahns who signed Snap lease-to-own agreements from 2017 through2022 will keep their merchandise and owe no further payments.
Snap Finance is a consumer financial services company that offers lease-to-own agreements through retailers rather than its own stores. When a customer chooses Snap at checkout, Snap buys the merchandise from the retailer, keeps ownership of the merchandise, and leases it to the customer until the lease is paid off.
The states allege that Snap used misleading disclosures about its leases, did not let customers see the full terms of their contracts, and used confusing payment terms. The states also allege customers had trouble reaching Snap when they tried to return products.
The states allege some customers believed they were signing up to pay off their purchases in 100 days or fewer, but instead entered into longer contracts that cost more. The states also allege Snap told customers that making on-time lease payments could raise their credit scores, a claim the states say was untrue. The investigation also examined Snap's debt-collection practices and its processes for returning products and ending leases.
"Utahns shouldn't get trapped in confusing leases when they buy everyday items," said Attorney General Derek Brown. "This settlement clears what Utahns still owed and lets them keep what they leased. We appreciate Snap's willingness to work with us to resolve our concerns and its commitment to doing business differently going forward."
"We expect businesses operating in Utah to be honest with their customers. Misrepresenting the true nature of a transaction, or even hiding those terms altogether, harms Utahns, their trust in the marketplace, and the state's economy," said Utah Division of Consumer Protection Director, Daniel Larsen. "We're pleased to see some of these wrongs made right, and appreciate the efforts of our partners in securing this strong result for Utah."
Snap cooperated with the investigation and agreed to change its business practices. Under the settlement, Snap must:
* Use accurate advertising. Snap will not use slogans such as "cash payoff," "same as cash" and "no additional fees required," which the states say hid the true cost of a lease.
* Show the full terms. Customers must see the full terms and cost of a lease, as state law requires, before they sign.
* Repair and replace property. Snap must repair or replace leased property in the situations the settlement lists. Snap also may not threaten to take back a product for nonpayment when it does not intend to.
* Make no credit score claims. Snap may not say that applying for a lease or using its lease-to-own product will raise a customer's credit score.
* Protect the right to end a lease. Snap must clearly tell customers they have the right to end a lease and may not interfere with that right. Snap must also give customers practical ways to return property and must stop charging payments while a request to end a lease is processed.
* Train retailers and report on compliance. Snap must meet initial and ongoing training requirements for its retail partners and file annual compliance reports for three years.
Iowa and Nebraska led the settlement, which cancels $662,102,518 in lease payments across 17 states. In addition, Snap will also pay $2.75 million to the participating states, including $150,000 to Utah. The other participating states are Arkansas, Florida, Georgia, Idaho, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Dakota, Oklahoma, Texas, West Virginia and Wyoming.
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Original text here: https://attorneygeneral.utah.gov/utah-settlement-with-snap-finance/
R.I. A.G. Neronha Sues Meta for Fraudulent Advertisements
PROVIDENCE, Rhode Island, Oct. 23 -- Rhode Island Attorney General Peter F. Neronha issued the following news release:
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Attorney General Neronha sues Meta for fraudulent advertisements
October 22, 2026
Attorney General Peter F. Neronha today filed a lawsuit against Meta for allegedly failing to curtail advertisements for fraudulent products and financial scams on its platforms, despite representing to the public that it engages in sophisticated efforts to prevent such ads. Rhode Island is the first state to file a lawsuit against Meta for this alleged behavior, following a similar lawsuit
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PROVIDENCE, Rhode Island, Oct. 23 -- Rhode Island Attorney General Peter F. Neronha issued the following news release:
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Attorney General Neronha sues Meta for fraudulent advertisements
October 22, 2026
Attorney General Peter F. Neronha today filed a lawsuit against Meta for allegedly failing to curtail advertisements for fraudulent products and financial scams on its platforms, despite representing to the public that it engages in sophisticated efforts to prevent such ads. Rhode Island is the first state to file a lawsuit against Meta for this alleged behavior, following a similar lawsuitbrought by Santa Clara County in California.
The complaint, filed in Providence County Superior Court, alleges that Meta continues these practices because they generate substantial revenue, despite knowing that scam ads cause significant financial harm to vulnerable consumers. Meta's alleged conduct violates Rhode Island's Deceptive Trade Practices Act (DTPA), and the Complaint seeks penalties and injunctive relief under that statute.
"For a company that engages so many Rhode Islanders and Americans, maintaining high standards for consumer safety should be of the utmost importance," said Attorney General Neronha. "As alleged, Meta knowingly exposed vulnerable users to fraud and scams, and made enormous profits in doing so. When companies, big or small, take advantage of Rhode Island consumers, this Office will do everything within our authority to hold them to account."
As alleged in the Complaint, Meta has helped create, refine, and distribute advertisements that promoted fraudulent schemes, deceptive offers, impersonation scams, fake investment opportunities, false Medicare and Social Security benefit offers, ineffective or dangerous health supplements or treatments, and other unlawful or deceptive conduct directed at consumers, including consumers in Rhode Island. Importantly, Meta provided design assistance, audience-selection tools, targeting capabilities, optimization systems, delivery services, analytics, and related services that enabled advertisers to identify, engage, and repeatedly solicit consumers likely to respond to fraud ads. As alleged, Meta knowingly and intentionally used extensive accountholder data to help advertisers target vulnerable consumers who are most likely to engage with scam ads. In particular, at-risk groups like senior citizens have lost substantial sums of money to fraud ads they encounter on Meta platforms.
In 2025, Reuters reported that about 10% of Meta's annual ad revenue ($16 billion) comes from ads for scams or restricted goods, that Meta knew this fact, and that Meta devised ways of further profiting from such ads while telling the public that it developed sophisticated methods to detect, remove, and prevent fraud. Further, Reuters reported that Meta knows based on its user data which consumers are most vulnerable to fraud or scam ads and uses this knowledge to help advertisers to fine tune their ads and reach their target audiences.
As further alleged, Meta showed users an estimated 15 billion ads containing clear signs of being fraudulent every day, a fact of which Meta was aware, and that ads that "present higher legal risk" yielded $7 billion annually in revenue. Additionally, Meta represented to consumers and regulators that it developed robust tools to identify and remove scam ads. In reality, the Company turned a blind eye to fraud findings, and in other cases, refused to implement tools to identify and remove fraudulent ads, allowing scam ads to proliferate. As further alleged, rather than removing some fraudulent ads, Meta charged companies a premium to display them, generating even more revenue from proliferating these scams.
The State is seeking a declaratory judgment that Meta violated the DTPA; injunctive relief; restitution to affected Rhode Island consumers; civil penalties for each violation of the DTPA; disgorgement of Defendants' unjust enrichment, benefits, and ill-gotten gains, plus interest, acquired as a result of the alleged unlawful conduct; and the appointment of a receiver, auditor, or monitor to ensure Meta's compliance with relief ordered by the Court.
Today's lawsuit follows an August 2026 multistate settlement with Meta Platforms, Inc. of up to $17.1 billion - one of the largest state consumer protection settlements in history - under which Rhode Island will receive at least $49.4 and up to $64.5 million. As part of that settlement, Meta must implement a sweeping set of safety features designed to protect children on Instagram and Facebook.
Deceptive Trade Practices Act
In 2021, Attorney General Neronha worked with the General Assembly to pass legislation that restored the authority of the Office of the Attorney General to protect Rhode Island consumers against violations of the DTPA. Other efforts led by the Attorney General under the DTPA include a lawsuit against a residential solar company for allegedly scamming Rhode Islanders, a suit against a contractor for alleged unlawful behavior, halting a Certificate of Good Standing scheme, as well as other investigations involving real estate schemes, auto dealerships, and non-compliance with lead safety laws within rental units, among other efforts.
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Original text here: https://riag.ri.gov/press-releases/attorney-general-neronha-sues-meta-fraudulent-advertisements
Okla. A.G. Drummond Comments After Swadley Sentenced for Defrauding Oklahoma Taxpayers
OKLAHOMA CITY, Oklahoma, Oct. 23 -- Oklahoma Attorney General Gentner Drummond issued the following news release:
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Drummond comments after Swadley sentenced for defrauding Oklahoma taxpayers
OKLAHOMA CITY (Oct. 22, 2026) - Attorney General Gentner Drummond today responded to the sentencing of Brent Swadley for his role in a multimillion-dollar scheme to defraud Oklahoma taxpayers.
Swadley received a six-year suspended sentence and was ordered to pay $1.2 million in restitution and $50,000 in fines. At Swadley's trial, the jury recommended he serve 10 years in prison.
"Judge Truong has
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OKLAHOMA CITY, Oklahoma, Oct. 23 -- Oklahoma Attorney General Gentner Drummond issued the following news release:
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Drummond comments after Swadley sentenced for defrauding Oklahoma taxpayers
OKLAHOMA CITY (Oct. 22, 2026) - Attorney General Gentner Drummond today responded to the sentencing of Brent Swadley for his role in a multimillion-dollar scheme to defraud Oklahoma taxpayers.
Swadley received a six-year suspended sentence and was ordered to pay $1.2 million in restitution and $50,000 in fines. At Swadley's trial, the jury recommended he serve 10 years in prison.
"Judge Truong hasinvited fraudsters like Brent Swadley to injure Oklahoma with impunity. She should resign," Drummond said. "The State proved our case in court, and we believe the verdict the jury returned was a just sentence. We asked that it be imposed, and the judge chose not to follow the jury's recommendation. When a judge ignores years-long investigations by multiple state agencies and a jury of Oklahoma citizens who thoroughly reviewed all of the evidence, public confidence in the justice system is undermined."
Swadley was convicted in May on six felony counts, including conspiracy to defraud the state and five counts of presenting false or fraudulent claims against the state. The charges stemmed from Swadley's contract with the Oklahoma Tourism and Recreation Department to operate Swadley's Foggy Bottom Kitchen restaurants at six state parks.
Evidence presented at trial showed Swadley submitted fraudulent invoices and directed a supplier to inflate equipment costs. His restaurant chain received approximately $16 million in state funds before the contract was canceled in 2022.
Drummond directed his office to investigate the contract in coordination with the Oklahoma State Bureau of Investigation shortly after taking office in January 2023. The Multi-County Grand Jury indicted Swadley and two others in February 2024. Both co-defendants, Curtis Breuklander and Timothy Hooper, pleaded guilty before Swadley's conviction.
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Original text here: https://oklahoma.gov/oag/news/newsroom/2026/october/drummond-comments-after-swadley-sentenced-for-defrauding-oklahoma-taxpayers.html
N.J. A.G. Davenport Takes Action to Move to Protect Taxpayers and Preserve Competition in Proposed CRH-Arcosa Merger
TRENTON, New Jersey, Oct. 23 -- New Jersey Attorney General Jennifer Davenport issued the following news release:
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AG Davenport Takes Action to Move to Protect Taxpayers and Preserve Competition in Proposed CRH-Arcosa Merger
Settlement Requires Sale of Some Asphalt Plants in New Jersey
October 22, 2026
TRENTON -- Attorney General Jennifer Davenport today announced the filing of a proposed consent judgment to preserve competition in the market for hot-mix asphalt (HMA) used to build and repair New Jersey's roads.
As a condition of CRH PLC's proposed acquisition of Arcosa, Inc., New Jersey
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TRENTON, New Jersey, Oct. 23 -- New Jersey Attorney General Jennifer Davenport issued the following news release:
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AG Davenport Takes Action to Move to Protect Taxpayers and Preserve Competition in Proposed CRH-Arcosa Merger
Settlement Requires Sale of Some Asphalt Plants in New Jersey
October 22, 2026
TRENTON -- Attorney General Jennifer Davenport today announced the filing of a proposed consent judgment to preserve competition in the market for hot-mix asphalt (HMA) used to build and repair New Jersey's roads.
As a condition of CRH PLC's proposed acquisition of Arcosa, Inc., New Jerseywill require the sale of multiple HMA plants, including facilities in Flemington, South River, Hillsborough, Howell, and Pennington. CRH proposed to buy Arcosa in June for more than $8 billion.
"By requiring the sale of these asphalt plants before the merger can proceed, we are ensuring that New Jersey taxpayers are protected from the higher prices that would almost certainly result from a near monopoly in this market," said Attorney General Davenport. "This agreement keeps the market competitive and safeguards the millions of public dollars spent every year on road infrastructure."
The complaint filed alongside the proposed final judgment alleges that CRH and Arcosa together would control roughly 75% of the supply of HMA approved by the New Jersey Department of Transportation across Mercer, Hunterdon, Somerset, Middlesex, and Monmouth counties if the merger were to proceed without conditions. This level of concentration would eliminate vital head to head competition, increase the likelihood of higher asphalt prices, and burden New Jersey taxpayers, who fund hundreds of millions of dollars in road infrastructure projects each year.
Antitrust action was especially important here because the market for HMA has high barriers to entry: new competitors need significant time and investment to set up production facilities and test products that meet NJDOT specifications. For example, any new players in the NJDOT-approved HMA market would have to purchase appropriate land close to an aggregate quarry, build a plant, procure the necessary land-use and environmental permits, and obtain NJDOT approval of each HMA mix made. So if the merger were to proceed without the agreed-upon divestiture of the existing plants, road infrastructure projects in New Jersey would likely have been completed at a higher cost to State taxpayers, or at a minimum significantly delayed.
The settlement gives the State of New Jersey sole discretion to approve the buyers of the divested assets, ensuring that the facilities remain in the hands of viable competitors capable of keeping prices fair.
The complaint and proposed final judgment were filed in the U.S. District Court for the District of New Jersey October 20, 2026, and are awaiting judicial approval.
Attorney General Davenport was represented in this matter by Assistant Attorney General Brian McDonough, Antitrust Section Chief David Reichenberg, and Deputy Attorney General Samuel Kontos-Bleifer in the Affirmative Civil Enforcement Practice Group, under the supervision of Deputy Director Sara M. Gregory, within the Division of Law.
Complaint (http://www.njoag.gov/wp-content/uploads/2026/10/2026-1020_ECF-1-Complaint.pdf) | Consent Judgment (http://www.njoag.gov/wp-content/uploads/2026/10/2026-1020_ECF-2-Letter-to-Court-re-Proposed-Final-Judgment-attached-PFJ.pdf)
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Original text here: https://www.njoag.gov/ag-davenport-takes-action-to-move-to-protect-taxpayers-and-preserve-competition-in-proposed-crh-arcosa-merger/
Attorney General Tong Announces Settlements with SunRun Solar and Others to Require Consumer Relief, Financial Penalties Following Deceptive Sales Tactics
HARTFORD, Connecticut, Oct. 23 -- Connecticut Attorney General William Tong issued the following news release:
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Attorney General Tong Announces Settlements with SunRun Solar and Others to Require Consumer Relief, Financial Penalties Following Deceptive Sales Tactics
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(Hartford, CT) - Attorney General William Tong today announced settlements with SunRun, Inc., Sunrun Installation Services, Inc., Elevate Solar Solutions, and two salespeople, requiring significant financial penalties and substantial consumer relief following allegations of unlawful and deceptive sales tactics.
Attorney
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HARTFORD, Connecticut, Oct. 23 -- Connecticut Attorney General William Tong issued the following news release:
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Attorney General Tong Announces Settlements with SunRun Solar and Others to Require Consumer Relief, Financial Penalties Following Deceptive Sales Tactics
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(Hartford, CT) - Attorney General William Tong today announced settlements with SunRun, Inc., Sunrun Installation Services, Inc., Elevate Solar Solutions, and two salespeople, requiring significant financial penalties and substantial consumer relief following allegations of unlawful and deceptive sales tactics.
AttorneyGeneral Tong sued SunRun, Elevate, Bright Planet Solar Inc. and salespeople Dakota Grumet and Sierra Howes in July 2024 alleging deceptive, unfair and unlawful sales of solar panel systems, including locking consumers into long-term contracts without consent by impersonating consumers, and installing non-functional systems. The complaint alleged multiple violations of the Connecticut Unfair Trade Practices Act and Home Improvement Act.
"We sued SunRun and Elevate following shocking consumer complaints, including forged signatures, impersonations of consumers, non-permitted work, and non-functioning systems. They locked homeowners into long-term contracts without full, informed consent, and failed to deliver what was promised. This settlement carries significant financial penalties, and forces SunRun to make things right for Connecticut customers. We will be watching this process closely and will not hesitate to aggressively enforce the terms of this agreement," said Attorney General Tong.
"A signed contract is one of the strongest forms of protection that a consumer and business can have," said Department of Consumer Protection Commissioner Bryan T. Cafferelli. "However, to lock consumers into a long-term agreement without their consent is illegal and will not be tolerated in Connecticut. This settlement sends a strong message that there are financial and occupational penalties to those who advertently deceive consumers. Most of all, we hope that this settlement offers the much-needed relief and support to those who were impacted."
SunRun
The settlement requires SunRun to pay $300,000 to the state and forces significant reforms and relief to stop and address fraudulent contracts.
SunRun must provide notice of this settlement to all consumers whose contracts were solicited by Elevate, Sierra Howes or Dakota Grumet, or any other individuals associated with these defendants believed to be engaging in similar improper conduct. SunRun must investigate all claims of fraudulent conduct and provide a consumer response within 60 days. If the investigation substantiates fraud, SunRun must offer one or more options for relief, including cash payments, account credits, contract cancellation, and/or removal of the system. For consumers who claim they never received a copy of their solar contract and for whom Sunrun can't provide proof of such receipt, consumers may cancel their Sunrun contract.
In the event of a dispute, SunRun must pay for an independent arbitrator. There is no cap on the restitution SunRun will be obligated to provide.
Consumers may submit claims to CTSupport@sunrun.com.
SunRun contracted with Bright Planet for solar marketing and sales. Bright Planet is no longer represented by counsel, but the case against it remains pending.
Elevate, Sierra Howes and Dakota Grumet
Elevate must dissolve under the settlement, and Elevate, Howes, and Grumet will be subject to a $200,000 penalty, suspended after $100,000 to ensure ongoing compliance.
Dakota Grumet was a principal and managing member of Elevate. For 10 years, he may not own any company whose business involves home solicitation sales, including home improvement sales, and he must remain under the direct supervision of a company. He must also create and maintain records for all unsolicited door-to-door or telephonic marketing he conducts.
Sierra Howes was a registered agent of Elevate. She must surrender all Home Improvement Salesperson registrations she holds with DCP and may not apply for a new registration or a Home Improvement Contractor registration for 10 years.
Defendants did not admit liability as a part of this settlement.
Cracking Down on Unfair Solar Sales
Today's settlement is the latest in a series of actions led by Attorney General Tong to crack down on unfair solar panel sales, marketing, and finance tactics.
In March, Attorney General Tong announced an investigation into SunStrong Management LLC following dozens of consumer complaints. That investigation is active and ongoing. Also in March, Connecticut announced a $100,000 settlement resolving an investigation into Spruce Power 3, LLC, a solar servicing company, following multiple complaints about billing, customer service, warranty issues, and other concerns.
In 2024, Attorney General Tong reached a $20,000 settlement with EnergyBillCruncher.com, resolving an investigation regarding false claims on social media. EnergyBillCruncher is a referral service that generates leads for solar installers.
Also in 2024, a Hartford Superior Court judge imposed a $5 million stipulated judgment against Vision Solar, settling the lawsuit brought by the Office of the Attorney General over high-pressure sales tactics, misrepresentations, delays and unpermitted work. Because Vision Solar has filed for bankruptcy, the company will not have sufficient assets to pay the judgment. Relatedly, Attorney General Tong has opened investigations into Vision Solar's financing partners, certain of which are ongoing, and in 2025 reached a settlement with the largest one, Dividend Finance, requiring it to provide relief to its Vision Solar borrowers who were defrauded.
In 2022, Attorney General Tong and the Department of Consumer Protection announced an investigation and enforcement action against Solar Wolf Energy over failures to complete, or even begin, promised work. Solar Wolf is currently blocked from doing business in Connecticut as a result of a court order and has since filed for bankruptcy.
Connecticut consumers who believe they have been harmed by a solar company's practices should file a complaint with the Office of the Attorney General here: https://ct.gov/agcomplaints or with the Department of Consumer Protection here: https://portal.ct.gov/DCP/Complaint-Center/Consumers---Complaint-Center.
See here for previously released guidance on reviewing residential solar contracts.
Assistant Attorneys General Michael Nunes and Joe Gasser and Consumer Protection Section Chief Michael Wertheimer assisted the Attorney General with this matter.
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Original text here: https://portal.ct.gov/ag/press-releases/2026-press-releases/attorney-general-tong-announces-settlements-with-sunrun-solar-and-others-to-require-consumer-relief
Attorney General Alan Wilson encourages South Carolinians to safely dispose of unwanted medications this Saturday
COLUMBIA, South Carolina, Oct. 23 -- South Carolina Attorney General Alan Wilson issued the following news:
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Attorney General Alan Wilson encourages South Carolinians to safely dispose of unwanted medications this Saturday
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(COLUMBIA, S.C.) - South Carolina Attorney General Alan Wilson encourages all South Carolinians to take part in the 31st National Drug Take Back Day this Saturday, October 24th, from 10 a.m. to 2 p.m.
Twice a year, the Drug Enforcement Administration (DEA) proclaims a national day to ask everyone to dispose of unused medication safely. These events over the last 16
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COLUMBIA, South Carolina, Oct. 23 -- South Carolina Attorney General Alan Wilson issued the following news:
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Attorney General Alan Wilson encourages South Carolinians to safely dispose of unwanted medications this Saturday
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(COLUMBIA, S.C.) - South Carolina Attorney General Alan Wilson encourages all South Carolinians to take part in the 31st National Drug Take Back Day this Saturday, October 24th, from 10 a.m. to 2 p.m.
Twice a year, the Drug Enforcement Administration (DEA) proclaims a national day to ask everyone to dispose of unused medication safely. These events over the last 16years (September 2010 - April 2026) were overwhelmingly successful and resulted in the collection and disposal of over 10,517 tons of pharmaceuticals nationwide, and 191,513 pounds in South Carolina. At the last Drug Take Back Day in April 2026, South Carolinians disposed of 4,905 pounds of unwanted or unused medications.
During that event last April, there were 4,417 locations nationwide where you could drop off your unused or unwanted medicines, with 47 locations in South Carolina. To find a location near you, go to TakeBackDay.DEA.gov.
"The message is clear and simple: take back and dispose," Attorney General Wilson said. "Prescription medications can be lifesavers, but if they're expired or they're taken in the wrong quantities or by someone they weren't prescribed for, they can be life-takers."
Go to your medicine cabinet, or wherever you keep medicine, and check for any unused or expired medications, including opioids.
Senior citizens are especially likely to keep unused pills. A grandparent's medicine cabinet is an easy place for teenagers or other loved ones to fuel their addiction. Check your own medicine cabinet first and encourage loved ones to clean out their unused medications too.
It's not only opioids that pose a threat if not disposed of properly, though. Unused or expired medications can lead to accidental poisoning, misuse, and overdose. Proper disposal saves lives and protects the environment.
Collection sites will not accept syringes, sharps, or illicit drugs. Liquid products, such as cough syrup, should remain sealed in their original container. The cap must be tightly sealed to prevent leakage.
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Original text here: https://www.scag.gov/about-the-office/news/attorney-general-alan-wilson-encourages-south-carolinians-to-safely-dispose-of-unwanted-medications-this-saturday/
AG's office defends workers' right to moonlight in settlement with Kiddie Academy
OLYMPIA, Washington, Oct. 23 -- Washington state Attorney General Nick Brown issued the following news release:
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AG's office defends workers' right to moonlight in settlement with Kiddie Academy
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The Attorney General's Office entered a consent decree today with seven Kiddie Academy childcare centers resolving claims they illegally prevented employees from working other jobs in their off hours. Under Washington law, employers can't restrict workers' ability to work a second job or work as an independent contractor if they are paying those workers less than twice the hourly minimum wage.
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OLYMPIA, Washington, Oct. 23 -- Washington state Attorney General Nick Brown issued the following news release:
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AG's office defends workers' right to moonlight in settlement with Kiddie Academy
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The Attorney General's Office entered a consent decree today with seven Kiddie Academy childcare centers resolving claims they illegally prevented employees from working other jobs in their off hours. Under Washington law, employers can't restrict workers' ability to work a second job or work as an independent contractor if they are paying those workers less than twice the hourly minimum wage.Employment restrictions can keep workers in jobs they would prefer to leave, and outside employment can provide additional income and new opportunities.
Under the terms of the settlement, the childcare centers will pay $252,500 to the affected workers and reform their policies. This is the first case resolved by Attorney General Nick Brown's Worker Rights Unit established in November 2025.
"Our economy has delivered incredible prosperity to some Washingtonians, but workers are facing rising prices and fewer opportunities," said AG Nick Brown. "Our Worker Rights Unit was created to support workers and enforce labor protections, and that's exactly what we did in this case. We will continue to hold employers accountable when they break Washington law."
Kiddie Academy is a nationwide childcare company that operates in a franchise model. The seven childcare centers included in this consent decree are all related franchises, Seattle Academy LLC, Bellevue Childcare LLC, Bothell Academy LLC, Greenwood Academy LLC, Kenmore Academy LLC, Mill Creek Academy LLC, and Redkirk Academy LLC, which are in King and Snohomish counties.
The AG's office received complaints from childcare center workers that their employer restricted them from providing childcare services outside work hours to families who were currently or formerly enrolled at the school. The AG's office alleges that prohibiting employees from taking outside employment or working as independent contractors is a clear violation of Washington law. The office also alleges the company's policies included non-disparagement clauses that did not include whistleblower protections required by law.
The settlement requires the childcare centers to pay $252,500 to workers who were harmed by the illegal policies. The AG's office estimates more than 600 workers may have been impacted, since the policies were companywide. The childcare centers must distribute the fund and report the settlement payments made to the AG's office.
The childcare centers must also change their policies so that employees are not restricted from obtaining outside work and that their non-disparagement clause includes whistleblower protections. The AG's office will monitor their compliance for the next two years.
AGO attorneys and staff who worked on this case include Assistant Attorney General Mark Rose and Paralegal Victoria Barbaglia.
In 2027, the minimum wage in Washington will be $17.73 an hour for most workers. The law that guarantees workers' ability to seek outside employment will apply to workers making less than $35.46 an hour in much of the state, though that number will be higher for workers in localities with a higher minimum wage.
Washington workers who believe their rights have been violated can contact the Worker Rights Unit.
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Original text here: https://www.atg.wa.gov/news/news-releases/ag-s-office-defends-workers-right-moonlight-settlement-kiddie-academy (TNSmrp)
