Jimmy John's agrees to end non-compete deals in Illinois

AP News
|
Posted: Dec 07, 2016 3:03 PM

CHICAGO (AP) — 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, tell 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 news release said the company is pleased to resolve the lawsuit.

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.