NEW YORK (AP) — New York Attorney General Eric Schneiderman says the Jimmy John’s sandwich chain has agreed to stop including non-compete agreements in hiring packets used for low-wage workers.
Schneiderman said Wednesday that such agreements “bully” workers into staying under threat of being sued, and companies should stop using them for minimum-wage employees.
The sample non-compete agreements Jimmy John’s sent its franchisees prevented employees from working for any nearby business that gets at least 10 percent of its sales from sandwiches for two years after they left.
Jimmy John’s said it assured Schneiderman’s office it wouldn’t support the enforcement of a franchisee’s non-compete agreement against a worker. Franchisees in New York that used the non-compete agreements have agreed to void past agreements and stop using them, the attorney general’s office said.