I have shared my views previously…I hate non-compete and non-solicitation contracts. They are unfair, unnecessary, and limit entrepreneurial competition and innovation.
I could not believe the recent reports that Jimmy Johns, a submarine sandwich franchise, required its employees to sign an oppressive and highly restrictive non-compete. It has been reported the agreement prohibited employees from performing services for “any business which derives more than ten percent of its revenue from selling submarine, hero-type, deli-style, pita and/or wrapped or rolled sandwiches” that is located within three miles of any Jimmy John’s for two years following termination of employment.
Give me a break! Jimmy John’s operates nationwide, the agreement if enforced would prevent former employees from working at another sandwich shop for two full years.
What possible reasonable business interest does Jimmy Johns have in preventing ex-employees from working for another submarine sandwich shop? Maybe Jimmy Johns has a “trade secret” on how sandwiches are made. Doubtful.
My Take: Congress should pass legislation preventing this type of corporate overreach.