When the Guy Making Your Sandwich Has a Noncompete Clause
nytimes.com
nytimes.com
- California, non-competes are not enforceable
- Poland, you can make non-compete for the time you pay full salary (e.g. if company wants you to restrict employment for 3 months after leaving it, you will get your salary during that period)
http://lawzilla.com/content/noncompete.shtml
This was discussed here, with someone disagreeing with the above (like I said, IANAL, I really couldn't tell you):
Being poor does not seem to have helped those people.
You have to be realistic about these kind of things. If, under better economic conditions, adults would never work these jobs and it would all be "teens first job" then they're not going to be geared up to check references or prior employers and they're not going to care if you leave your previous employer section blank. You don't need a stellar resume to meet the minimum requirements to flip burgers and if you show up with a stellar resume it proves you don't know how to play the game and they will politely tell you you're overqualified, until you learn to play the game.
Step 1 -- Let's ignore reality (low end jobs are not primarily teens anymore [1]); the actual quoted experience in the article
Step 2 -- now firmly in our fantasy land, this nasty action of employers definitely isn't a problem!
Step 3 -- therefore, nasty action isn't a problem!
Step 4 -- The aristocrats.
[1] http://thinkprogress.org/economy/2013/08/08/2433601/fast-foo...
What they can do is get an injunction to stop you, and they could also send nastygrams to your new employer to get them to can you.
But even if you have money that doesn't mean it makes economic sense to pay for an attorney's time and file suit. Even attorneys don't file a lawsuit just because they can. Their time is worth money and there is also the opportunity cost.
Likewise it works both ways. Take a developer who doesn't complete a project yet collects $6000 from someone as a deposit. Doesn't pay to bring a lawsuit even if you can afford an attorney. [1]
[1] An actual case I was the one out the $6000 deposit. I walked away from it (and I'm glad as it would have been tons of aggravation as well as attorney fees).
I'm really wishing the NYT had tried to get a comment from Jimmy John's corporate before publication. I'd love to hear their justification for that.
Somehow I doubt it.
Turn the problem into a chance for free positive PR, no matter how much you have to twist things to do so. That's what I'd expect, anyway.
http://www.smilepolitely.com/splog/jimmy_john_is_a_big_man._...
I used to eat there pretty regularly until I saw those photos. I haven't ate there since.
Fuck...I've eaten there fairly regularly myself. No longer.
For all the things California is doing to drive out businesses, one great thing about the state is that non-competes have very little weight. (In fact, this was what led Google and Apple to screw over the tech industry for many years, but I digress). The measures are very rarely enforced even in states that do support them. What with a new load of state legislators coming into office over the next few months, fixing non-competes in those other states is an easy win that could increase the state's competitiveness.
Don't get into an agreement you're not willing to enforce... lets be realistic, the victims are judgment proof, if they lose, the company might be able to repo their hat or apron, that's about it.
Most likely result is if you quit and tell your boss you're going to a competitor of any sort in the food service industry, you won't get your last pay check. It'll cost too much to get it, so corporate wide its free money for the company across the large set of all employees.
2 - particularly if you don't know how to work the system, where to file a complaint, or how to get help;
3 - still a problem if you don't have the money to wait for that paycheck to show up for months or years
In California, there's a fairly straightforward process, assuming you go through the CA Labor Commission instead of a lawsuit. If the employer contests your claim in any way, it basically takes at bare minimum 6 weeks to complete, and often longer. A normal timeline, in a contested case, would be bare minimum 8 weeks until cash in hand. Longer timelines are typical. You may read a description here: http://www.dir.ca.gov/dlse/howtofilewageclaim.htm
California law provides for penalties payable to the employee, giving him his daily wage for each day the last payment is delayed. http://www.dir.ca.gov/dlse/faq_waitingtimepenalty.htm It typically isn't worth trying to dick over your old employee.
You responded with the law, and a bunch of idiocy. Oh, it's against the law to dick over employees? Well then, it never happens -- case closed!
Ironically, I worked for JJ in college, and never once did this ever concern me. This may be my personal bias, but I think the NYT is trying to make mountains out of molehills here. There are much bigger contributing factors to low wages for fast food restaurant workers, such as illegal immigrants depressing wages, limited ability for workers to organize, and perverse tax incentives that prevent profits from working their way down the economic ladder.
As a side note, JJ pays better than a vast majority of fast food restaurant chains. Their in-shop workers are paid above minimum wage (average around $8.50), and it's fairly easy to move into a delivery driver position where you can earn $25/hr on Fridays and Saturday nights.
It's certain that Jimmy John's line-worker can't start a 2,000 store chain, but they could run off with some of the catering business.
I generally agree with you that limiting future employment is generally not a good thing, although I'm not convinced getting rid of non-competes in minimum wage jobs would materially affect wages. At most, it might prevent someone from taking a manager position at Subway, but I don't think it is going to raise the overall wages of restaurant workers.
The idea that Jimmy Johns could expect the right to bind minimum-wage-earning food service workers with a noncompete is verkakte. Even in circumstances where employees are given access to trade secrets and client rolodexes, noncompete agreements are difficult to enforce and almost invariably slashed to bits by courts when they survive at all.
Obviously, Jimmy Johns will not prevail in enforcing a noncompete on a minimum-wage employee. What they're doing is simply intimidating their own workers, probably based on some simple calculation about the impact their bogus noncompete will have on employee turnover, which is a metric every at-scale retail business optimizes for.
It is easy to devise logically-consistent reasons Jimmy Johns would want to bind their employees with anti-competitive contracts. Such arguments more or less beg the question.
Doesn't mean blanket non-compete is fair, but to completely dismiss the OPs point it at best naive.
My opinion is that Jimmy Johns is in fact not concerned that their employes will start competing firms. Rather, they'd like to minimize employee turnover, which, unlike local sandwich business starts, is a metric they actually probably do track. And one vehicle they've found for minimizing turnover is in tricking their employees into believing they have fewer alternative jobs available than they actually do.
The blanket way OP has been dismissed really has to do with the rustled jimmies about the fairness of the policy and does not reflect well on the quality of the replies.
The argument that asking employees to sign a non-compete is somehow unethical, yet getting a low-wage job to learn how to run a competing business is not unethical is moot and completely subjective.
Probably because it's a really dumb side to the story?
An individual Jimmy Johns franchise has to worry about one of their sandwich assemblers starting their own deli as much as I have to worry about catching ebola.
Ok, I'll bite. In what way does starting a small business "cost less"? Less than what? Have you ever tried to get a loan to start a retail restaurant? It's incredibly difficult to get the funding necessary, especially in an industry with such low margins.
All these businesses can be started with either 1) personal savings, 2) a family and friends loan, or 3) credit cards. They all also have the advantage of generating cash from day 1, vs a tech startup which can have substantial development time.
I appreciate your judgement on my knowledge of the life of a minimum wage worker. Yes, there are many who are struggling to get by, this is a very real problem that needs to be fixed. However, generalizing the skill set and struggles of a few to an entire wage class of labor is absurd. You're talking about millions of individuals in just as many different live situations across thousands of local markets. I would advise you to rethink your assessment of the life of a minimum wage worker. You might want to add a little complexity and depth to your profile of the minimum wage worker.
http://thinkprogress.org/economy/2013/08/08/2433601/fast-foo...
You mean like you did earlier in your post? I backed my claims up with data, you backed yours up with an anecdote about trust fund babies and college kids.
I also never mentioned this practice was right or wrong, I just stated there is another side to this argument that the NYT is not sharing, and they did so in a biased way.
Idiot.
"A 2009 survey by "Restaurant Startup and Growth Magazine" found that the average owner spent $451,966 to get his restaurant up and running -- not including the acquisition of real estate. With a land purchase, the average total cost went to just over $700,00. Even those with starting costs in the lowest quartile of respondents spent $125,000."
http://smallbusiness.chron.com/startup-cost-opening-restaura...
The threat is potential competitor decides he want to open sandwich shop. Already has the capital in place, doesn't have the experience. Decided to get a job at Jimmy Johns to learn how they operate. I have no idea why people dismiss this like it's crazy. If you were already set on opening a hamburger shop/chain, you wouldn't stand a couple of months at minimum wage at McDonalds to see how a successful McDonalds franchise operates?
If JJ can't compete with businesses that their former employees start, then why should JJ continue to exist?
The more likely reason is because JJ's and/or the franchisee know that their line workers can and frequently do hop jobs over small things like consistency of hours, a manager they don't get along with, or a $0.25 increase in pay. Lost manpower and retraining hurts the store's bottom line.
I was just in a Chipotle last night, standing behind a Starbucks worker taking a break from the shop next door. The SBux worker and the Chipotle line staff instantly started an exchange over who they knew was hiring, what the conditions were like at their respective stores, and what the pay was. Everyone keeps their ear to the ground these days.