Non-Competes For Sandwich Makers Draws An AG Lawsuit

The Illinois attorney general has filed a putative class action against Jimmy John’s, claiming the restaurant chain requires low-wage workers to sign overly broad non-compete agreements, pledging them not to go to work for a competitor within two miles of a Jimmy John’s outlet anywhere in the United States for a period of two years after leaving. Competitors are defined to include businesses that derive at least 10 percent of revenue from the sale of “submarine, hero-type, deli-style, pita and/or wrapped or rolled sandwiches.” According to the AG, this agreement runs counter to common law and violates the Illinois Consumer Fraud and Deceptive Business Practices Act. “While the Illinois AG’s suit appears to be the first of its kind, it is in line with a growing governmental interest in employee mobility issues,” according to Orrick attorneys Christina Von der Ahe and Stephanie Lee.