Week in Review

June 27, 2016

Jimmy John's to Stop Including Non-compete Agreements in Hiring Packets
Jimmy John's Gourmet Sandwiches has agreed to stop including sample non-compete agreements in hiring packets it sends to its franchisees. Jimmy John's also agreed to inform its franchisees that the Attorney General has concluded the non-compete agreements are unlawful and should be voided. The non-compete agreements prohibited sandwich makers, for a period of two years after leaving a job with Jimmy John's, from working at any establishment within a two-mile radius of a Jimmy John's location that made more than 10% of its revenue from sandwiches. New York law does not permit the use of non-compete agreements, except in very limited circumstances. For example, a non-compete agreement may be allowed to protect trade secrets or in relation to employees with uniquely special skills.

Chicago Paid Sick Leave Measure Passes
The Chicago City Council has passed an ordinance that requires employers to provide employees working in the City with paid sick leave. The ordinance will take effect July 1, 2017. All employees will accrue 1 hour of paid sick leave for every 40 hours they work. Employees will be able to roll over up to 20 hours of paid sick leave to the following year. New employees can use accrued sick leave after an initial six month introductory period, and employers that offer combined leave benefits such as Paid Time Off (PTO) are exempt from these requirements so long as employees can accrue and use up to 40 hours of PTO within a calendar year. Employers will not be required pay out unused sick days at separation. Sick leave benefits that are negotiated as part of a collective bargaining agreement are exempt from the new law.

Maryland and D.C. Set to Increase Minimum Wage on July 1
As of July 1, both Maryland’s and the District of Columbia will increase the minimum wage. Maryland’s minimum wage will increase to $8.75 per hour. Employers in Montgomery County and Prince George’s County, Maryland should also take note that the counties are increasing their minimum wage to $10.75 per hour on July 1, 2016. The District of Columbia’s minimum wage will increase to $11.50 per hour.