Illinois Attorney General Lisa Madigan is suing the Jimmy John's sandwich chain accusing it of improperly forcing low-level employees to sign agreements preventing them from seeking jobs with competitors.
Madigan announced the lawsuit against Champaign-based Jimmy John's in a news release Wednesday. She called the non-compete agreements unfair.
“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.”
A phone message left with Jimmy John's corporate offices by The Associated Press was not returned.
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.
Madigan says Jimmy John's initially said it stopped using non-compete agreements in 2015 but later said the policy change was never implemented.
Madigan’s lawsuit alleges the agreement is illegal and unenforceable under Illinois law.