Daily Labor Report® is the objective resource the nation’s foremost labor and employment professionals read and rely on, providing reliable, analytical coverage of top labor and employment...
June 8 — Submarine sandwich chain Jimmy John's illegally imposes noncompete employment terms on its at-will, low-wage workforce, Illinois Attorney General Lisa Madigan has alleged in a lawsuit ( Illinois v. Jimmy John's Enters. LLC, Ill. Cir. Ct., No. 2016 CH 07746, complaint filed 6/8/16 ).
Champaign, Ill.-based Jimmy John's and Jimmy John’s Franchise LLC require all employees to sign noncompete agreements as a condition of employment, Madison said in a complaint filed June 8 in Cook County Circuit Court. Such terms are not only unfair to Jimmy John's thousands of low-wage workers, but such competitive restrictions are illegal and unenforceable under Illinois law, she said.
“Preventing employees from seeking employment with a competitor is unfair to Illinois workers and bad for Illinois businesses,” Madigan said in a statement. “By locking low-wage workers into their jobs and prohibiting them from seeking better paying jobs elsewhere, the companies have no reason to increase their wages or benefits.”
Madigan's action asserts the particular noncompete language imposed by Jimmy John's is overly broad, illegal and serves no legitimate business interest.
The lawsuit notes that Jimmy John's employees must agree that, “during their employment and for a period of two years thereafter they would play no role, including as a manager, owner, or employee, of any business that earns more than ten percent of its revenue from selling ‘submarine,' ‘hero-type,' ‘deli-style,' ‘pita,' and/or ‘wrapped' or ‘rolled sandwiches.' ”
Such restrictions apply to “any business located within three miles of either the address at which the Store Employee worked or any other Jimmy John's Sandwich Shop anywhere in the country,” the lawsuit states.
The action alleges the fast food company uses the terms to “chill any effort by employees to consider leaving for another employer.”
A spokesman for Jimmy John's declined to comment, saying the company had just learned of the complaint.
Jimmy John's, which touts its “freaky fast” delivery service, operates more than 2,000 corporate and franchise stores in 43 states. Illinois is home to 274 Jimmy John's stores.
To contact the reporter on this story: Michael J. Bologna in Chicago at email@example.com
To contact the editor responsible for this story: Susan J. McGolrick at firstname.lastname@example.org
The complaint is available at http://src.bna.com/fIY.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)