Franchise News

Jimmy John’s forces workers into noncompete agreements

Oct 17, 2014 12:40 AM EDT | By Staff Reporter

Jimmy John's sandwich shop employees are being forced to sign noncompete agreements, barring them from working for competing organizations like Potbelly and Subway, The Huffington Post reports.

"Employee covenants and agrees that, during his or her employment with the Employer and for a period of two (2) years after," the agreement reads.

"he or she will not have any direct or indirect interest in or perform services for ... any business which derives more than ten percent (10%) of its revenue from selling submarine, hero-type, deli-style, pita and/or wrapped or rolled sandwiches and which is located with three (3) miles of either [the Jimmy John's location in question] or any such other Jimmy John's Sandwich Shop."

 The agreement is said to negatively target low-wage employees, like delivery drivers and deli workers, since they are prohibited from picking up second jobs in similar organizations.

Controversy also surrounds the company as one worker revealed he was unaware of the policy.

"A lot of the people I work with don't make a lot of money and have second jobs," the anonymous worker said, according to Business Insider.

"It would be difficult to get a second job in the same industry if you followed this rule." 

Jimmy John's officials have declined to comment on the noncompete agreement. 

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