It would not unseat the presumptive and early-declared winner of the 2014 Ethics Alarms Corporate Asshole Of The Year Award (of which, by the way, there is new news: the consumer Comcast got fired for complaining about its lousy service is suing), but sandwich chain Jimmy John’s outrageous noncompete clause in its employee contracts puts it in an enviable position of strength to be runner-up Corporate Asshole, if that is its aspiration.
It must be. Non-compete clauses are roundly detested in the law, often illegal, and frequently struck down by courts as unconscionable. They are justified, if at all, when an employee has a management-level position in a high tech or sophisticated knowledge and innovation field, or when he or she is a prominent industry figure who could instantly harm a company by leaving and launching direct competition. Increasingly, however, companies have been using tight job markets to foist noncompete provisions on lowly service employees too, as fine-print additions to contracts that the employee is unlikely to have thoroughly read or understand. The New York Times reported on a Massachusetts man who sprayed pesticides on lawns for a living, and who had to sign a two-year noncompete agreement to do it. A standard textbook editor was required to sign an agreement banning him from working for another publisher for six-months if he left his position. A marketing firm pressured a newly-minted Boston University grad to sign a one-year noncompete pledge for an entry-level social media job, and a even summer interns at an electronics firm had to agree to a yearlong ban. Continue reading
