In our update on 02-07-2016, we augmented the lesson plan on Confidentiality with information about non-compete agreements.
On 06-08- 2016, the Illinois Attorney General filed suit against the Jimmy Johns sandwich chain, an Illinois-based employer, indicating that their non-compete agreement was unconstitutional. The Jimmy Johns agreement restricts employees during their employment and for two years afterward from working in other businesses that earn more than 10% of their money selling sub-, hero-, deli-, pita, wrapped-, or rolled-style sandwiches. The Attorney General declared that preventing employees from seeking employment with a competitor is unfair to Illinois workers and bad for Illinois business. Locking low-wage workers into their jobs and prohibiting them from seeking better-paying jobs elsewhere, then companies have no reason to increase their wages or benefits. The lawsuit states that these non-competition agreements are unreasonable, unconscionable, and unenforceable under Illinois Law as to all store employees at Illinois stores.
However, Illinois state law does require a non-compete agreement to be based on a legitimate business interest, and narrowly tailored in terms of time, activity, and place.
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