This has to represent some kind of precedent in the ongoing national battle for and against higher wages among low-skilled workers.
Imagine being paid the minimum wage – and then told by your boss that you cannot take a better job that pays more.
That’s what’s happening at Jimmy John’s sub shops in Illinois where lowly sandwich makers and delivery drivers are forced to sign a “no-compete” agreement just like in the corporate world.
No-compete clauses are common among company executives who sign a contract agreeing not to go work for the competition. In exchange for a six-figure salary and a package of perks, the exec is prevented from leaving the company for a certain period of time unless it is to pursue other interests or a new career.
The folks at the Jimmy John’s chain are enforcing that same concept for its low-level employees and the Illinois Attorney General has responded by taking the company to court.
According to the Associated Press, AG Lisa Madigan announced today that she believes the agreements are illegal under Illinois law, and they merely present a tactic to avoid giving workers pay raises.
“Preventing employees from seeking employment with a competitor is unfair to Illinois workers and bad for Illinois businesses,” Madigan said. “By locking low-wage workers into their jobs and prohibiting them from seeking better paying jobs elsewhere, the companies have no reason to increase their wages or benefits.”
The AP reported that the agreements prevent employees from working for any business located within three miles of a Jimmy John’s that derives at least 10 percent of its revenue from submarine or deli sandwiches. A later version of the agreements changed the restriction to two miles.
Jimmy John’s, based in Champaign, Ill., had previously said they were eliminating the no-compete requirements. But they weren’t exactly freaky fast about it. In fact, the company said it stopped the agreements in 2015, yet they later admitted the policy change was never implemented.
Jimmy John’s owner, Jimmy John Liautaud, has already faced online campaigns to boycott his shops because of his past interest in African big-game hunting and Liautaud’s penchant for posing with his trophies – photos with a dead leopard, an elephant and a rhinoceros. He’s also known as the sandwich guy who owns a $100 million yacht.
I suspect the company may be facing another backlash for its highly unusual version of no-compete requirements.
Photo: Flickr/JeffreyW
