Home > Uncategorized > Business Law Update: Jimmy John’s Non-Competes: Teenagers Can’t Deliver Sandwiches?

Business Law Update: Jimmy John’s Non-Competes: Teenagers Can’t Deliver Sandwiches?

Above the Law is a legal blog that posts interesting news in the legal world. I had to comment on this latest one I saw:

Jimmy John’s Serves Up Sandwiches And Oppressive Non-Compete Agreements.

See the link:  or follow Above the Law on twitter: @atlblog

In Michigan, Non-Competes are enforceable to protect legitimate business interests.

MCL 445.774a provides:

“1) An employer may obtain from an employee an agreement or covenant which protects an employer’s reasonable competitive business interests…”
Further the Agreement must be reasonable:
  • “as to its duration,
  • geographical area, and
  • the type of employment or line of business.”

Quick note – I posted an article about a possible change to Michigan covenants not-to compete statute, you can see that article here – no new movement on that HB. It might just be stuck in committee where it will die…

At any rate,

The question posed by the Above the Law article is a good one – ok, Jimmy Johns, you have a non-compete agreement, that may be valid…so,

to what end?

What is the point? What type of legitimate business interest is Jimmy Johns trying to protect here?

As lawyers who have the luxury of a business court docket in Grand Rapids, Michigan, we have a court system that understands that businesses do have a legitimate interest to protect, thus making non-competes valid. However, courts are also quick to strike, or limit, any restraint they deem unreasonable.

I would hate to be the lawyer representing Jimmy John’s to enforce an injunction in Grand Rapids Circuit Court to enjoin an 18-year old from making sandwiches…

questions? comments?

email: Jeshua@dwlawpc.com

http://www.dwlawpc.com

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