NEW YORK (Legal Newsline) — Jimmy John’s Gourmet Sandwiches has agreed to stop including sample non-compete agreements in hiring packets it sends to franchisees, New York Attorney General Eric T. Schneiderman has announced.
Jimmy John’s will also notify its franchisees that the non-compete agreements are unlawful and should be voided.
The sandwich chain allegedly had been distributing these unlawful non-compete agreements to New York franchisees, for use with prospective employees. These agreements forbade employees for working for any establishment within 2 miles of Jimmy John’s that make more than 10 percent of their revenue from sandwiches for a period of two years after leaving the company.
“Non-compete agreements for low-wage workers are unconscionable,” Schneiderman said. “They limit mobility and opportunity for vulnerable workers and bully them into staying with the threat of being sued. Companies should stop using these agreements for minimum wage employees.”
New York law does not permit non-compete agreements, with a few exceptions like agreements meant to protect trade secrets or ones for employees with uniquely special skills.