Jimmy Johns Non-Compete Agreement Comes Under The Spotlight

Irvine employment lawyers are not unfamiliar with non-compete agreements. These are a very necessary part of safeguarding confidential information in your workplace. However, an unusual non-compete agreement that has been drafted by Jimmy John’s sandwich shop, has come under the spotlight nationwide.

Under the non-compete agreement, employees at Jimmy John’s are required to promise that they will not work for a similar establishment within 3 miles of the establishment for a minimum of two years after leaving Jimmy John’s. It’s not clear why employees have been placed under such a stringent non-compete agreement.

According to clauses of the non-compete agreement that have been obtained by the Huffington Post, employees will agree that during their employment with the employer, and for at least two years after the termination of their employment, they will not indulge in any direct interest or services in a business which obtains more than 10% of its revenues from selling a number of products, including submarine sandwiches. Employees will also agree not to work in an establishment which is located within 3 miles of a Jimmy John’s shop.

Company representatives have not yet responded to questions being raised about the non-compete agreement. However, it is highly likely that the non-compete agreement will be successfully legally challenged in court.

There are certain key elements in a non-compete. A non-compete agreement should not be seen as infringing on an employee’s rights to a productive life after he ends his employment. The Jimmy John’s non-compete agreement seems to do doing that.

In non-compete agreements, employers will require that employees do not jump to a rival, but in most cases, the duration of such restriction is for six months. Courts will frown on non-compete agreements that require employees to keep away from competitors or other firms for more than six months, because it affects the employee’s ability to earn a living.

Get professional legal guidance when you draft a non-compete agreement for your employees. Speak to an Irvine employment lawyer about how you can safeguard confidential information in your workplace, while also avoiding litigation.