Non-Compete Clauses Becoming More Common in Unexpected Places
Leaving an old job for a better paycheck? Maybe not, if the old boss can help it.
A lawsuit targeting fast-food sandwich chain Jimmy John's has put scrutiny on agreements banning low- and middle-wage workers from competing against their former employers.
Non-competition agreements are better known among high-paid professionals, salespeople and senior executives. In some cases, companies may fear a senior executive who quits one job may walk out the door with trade secrets or client lists and give them to a new employer.
But maids, nail stylists, agriculture workers, sandwich makers and cable TV installers have also been required to sign such deals.
It's not clear how many low- or middle-wage workers are required to sign non-compete agreements. Legal filings make clear the practice extends beyond the executive suite.