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Jimmy John's noncompete agreements to be investigated by NY AG

December 23, 2014

New York's Attorney General Eric T. Schneiderman reportedly plans to investigate the legality of Jimmy John's noncompete agreements. According to the Huffington Post, word of the noncompetes went viral in October, conjuring up controversy due to their tight restrictions. 

The contracts are signed by employees who agree not to work at a competing sandwich shop for two years following their employment with Jimmy John's. Competing sandiwich shops are defined in the agreements as "any business that earns 10 percent or more of its revenue from sandwiches and is located within 3 miles of a Jimmy John's," the Huffington Post reports. 

Members of Congress have also called for an investigation. 

Scheiderman plans to ask Jimmy John's franchisees in New York for copies of the contracts distributed by corporate, as well as a list of employees who have signed them. His intention is to investigate whether or not they violate state law. The legality of such contracts are different in each state.