Jimmy John’s Agrees To End Non-Compete Deals In Illinois

Illinois Attorney General Lisa Madigan says the Jimmy John's sandwich chain has agreed to stop requiring low-level employees to sign agreements preventing them from seeking jobs with competitors. Madigan said Wednesday the Champaign-based chain also agreed to inform employees that previously signed agreements will not be enforced.

The settlement also means Jimmy John's requires franchise owners to rescind existing agreements and pay $100,000 to be used for public awareness of legal standards for non-compete agreements. Madigan sued Jimmy John's in June.
 
A Jimmy John's spokesperson said the company is pleased to resolve the lawsuit, but took issue with the filing, saying the Attorney General had not cited a single example of the sandwich chain ever attempting to enforce a non-compete agreement, nor had it identified an instance of an Illinois resident claiming to have suffered harm as a result.

"This settlement helps ensure Illinois' workers have freedom to change jobs in order to seek better wages, further their careers and improve their lives," said Madigan. "Workers in Jimmy John's sandwich shops should know they are not subject to these unfair and unenforceable agreements."
 
The agreements forbid employees from working for any competitor near a Jimmy John's that derived at least 10 percent of its revenue from submarine or deli sandwiches.
 
Jimmy John's reached a similar settlement with the state of New York in June. The franchise operates nearly 300 sandwich shops in Illinois.