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Jimmy John’s Must Still Face Franchise No-Poach Claims

May 21, 2019, 7:09 PM

Jimmy John’s LLC and two franchise operators must still face an antitrust challenge to “no poach” clauses in their employment agreements, despite a Justice Department statement defending such provisions under some circumstances.

Judge Nancy J. Rosenstengel refused May 21 to revisit a ruling letting two former employees move forward with their proposed class action under the Sherman Act.

Rosenstengel, of the Southern District of Illinois, took over the case in March, following the retirement of Judge Michael J. Reagan, who issued the 2018 decision letting the case proceed.

The DOJ’s statement, in which it argued that franchise no-poach agreements should ...

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