Sub-Shop Employees and Non-Compete Agreements

If you were to obtain a position as a fast-food server, deli sandwich maker or food delivery person, it would be highly unexpected that the employer would require you to sign a non-compete agreement in order for you to work for them.  Generally, non-compete agreements are signed by individuals who are going to hold a senior executive and/or management level position which allows them to have access to company trade secrets and/or proprietary information.  However, this past year, a federal lawsuit was filed in the Northern District of Illinois against the submarine franchise Jimmy John’s because many of their franchises had required their rank-and-file employees to sign non-compete agreements.  These non-compete agreements were prohibiting ex-employees from working for competitors for a period of two years and within a 3 mile radius of any Jimmy John’s restaurant if that competitor makes a portion of their revenues from selling subs, hero, deli and wrapped sandwiches.  It is being alleged that the non-compete terms being placed on these general employees are too restrictive and goes beyond the scope of reasonable purpose.

Companies invest a lot of time and money into their ideas and products, therefore, it is understood that they want to ensure that their trade secrets and proprietary information are protected.  However, companies and employees also have to make sure that such non-compete agreements and terms are within the scope of the law.  The attorneys at Traverse Legal can assist companies in that protection with appropriate non-compete agreements, as well as help individuals who are seeking employment and may be required to sign a non-compete that such an agreement is not too restrictive or unfair.