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Jimmy John’s Sandwich Chain Drops Noncompete Pacts

June 22, 2016, 4:00 AM

The Jimmy John’s sandwich chain has agreed to stop including sample noncompetition agreements in hiring packets it sends to franchisees, New York Attorney General Eric T. Schneiderman (D) announced June 22.

The settlement, which resolved an investigation that began in December 2014 with inquiries to Jimmy John’s corporate offices and its New York franchisees, also requires the chain to inform the franchisees that the attorney general has concluded that the noncompete agreements are unlawful and should be voided.

The state investigation revealed that some Jimmy John’s franchisees in New York utilized the noncompete agreements, Schneiderman said. They’ve pledged to stop ...

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