Labor/Employment
Nov. 5, 2014
Franchisors should beware standardized noncompetes
Sandwich shop Jimmy John's makes its employees - down to the sandwich-makers and delivery drivers - agree not to work for competing establishments for two years after leaving the company. By An Nguyen Ruda and Brian K. Morris
Noncompete agreements are typically signed by high-level executives. Increasingly, however, they are used for lower level employees. A class action filed against Jimmy John's, an Illinois-based sandwich franchise with approximately 80,000 employees, shows there are risks to such blanket use of noncompetes. Brunner v. Jimmy John's et al., 14-05509 (N.D. Ill. 2014). The plaintiffs allege that the restaurant forc...
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