We recently read with amusement that Jimmy John’s finally agreed to stop making their sandwich-maker employees sign non-compete agreements. Jimmy John’s operates in a number of states where employees can be required to sign non-compete agreements as part of their employment. New York, however, had to tell Jimmy John’s the obvious – asking these folks to sign these agreements was unreasonable.
California is very protective of employees’ right to work and will not allow employers to require such non-compete agreements from their employees. The only time California allows such agreements to be enforced is if the agreement is required from an employee/owner of a business as part of a sale transaction.
For further reading, here are the full statements from New York Attorney General Eric T. Schneiderman regarding this issue:
1. A.G. Schneiderman Announces Settlement With Major Legal News Website Law360 To Stop Using Non-Compete Agreements For Its Reporters
2. A.G. Schneiderman Announces Settlement With Jimmy John’s To Stop Including Non-Compete Agreements In Hiring Packets