CASE How Special Is That Sandwich? Companies have every right to protect their i

Question

CASE How Special Is That Sandwich? Companies have every right to protect their intellec location where the individual previously worked tual property and trade secrets. In fact, they have a or any other Jimmy John's shop (there are 2,000 responsibility to shareholders to do so because this U.S. store locations). That's a fairly broad swath proprietary information is often the source of com of geography. Because Jimmy John's operates in petitive advantage. Careful safeguarding of secrets 43 states, it is difficult to state without exception is an important part of ensuring the sustainability that the noncompete clause would not be upheld of the firm in a court proceeding. However, most legal experts But what exactly qualifies as a trade secret? believe that it is overly broad and the company For instance, one fast food company advertises would be unlikely to prevail in a lawsuit. It hasn't its “secret sauce," and a producer of baked beans, been tested in court yet. "secret family recipe" has been widely featured in Why would a company implement and require its television commercials. Would anyone argue such a tough restriction on low-wage workers? That that the search algorithm developed and used by is anybody's guess, and the company's manage Google is a trade secret? Probably not. Trade se- ment wouldn't respond to reporters who uncovered crets are pretty broadly defined and can include the story. So, we can only speculate on why such a things like customer lists, recipes, formulas, and policy exists. Lawmakers have become interested in software. So, is a sandwich recipe a trade secret? the case because it appears to almost border on in- Jimmy John's management certainly thinks so. The timidation and bullying of workers. Companies are recipe consisting of a quarter pound of roast beef certainly free to set policies and practices to protect with provolone cheese on a pita is a trade secret in legitimate business concerns. But it seems to be a the company's eyes. stretch to consider meat, cheese, and bread as any- The New Jersey-based sandwich company re thing special that needs the special protection of a quires all of its workers-including entry-level noncompete agreement.2 workers who are earning starting wages-to sign a stringent “noncompetition" clause as part of the QUESTIONS hiring process. When employees sign the agreement, they agree not to work "at any business which de 1. Based on your understanding of this case, what rives more than 10% of its revenue from selling sub- possible reasons could Jimmy John's manage- marine, hero-type, deli-style, pita and/or wrapped or rolled sandwiches." That would seem to cover an the HR manager at Jimmy John's, what pros and awful lot of establishments, from direct competitors cons would you point out to management in in the food industry to the gas stations, co stores, and the neighborhood hospital cafeteria. 2. If you were an entry-level worker at Jimmy ment have for adopting this policy? If you were terms of the effect of having this policy? Former employees are prohibited from work John's, how would the requirement to sign a ing in such a place for two years after they leave noncompete agreement influence your opiniorn Jimmy John's employment. The geographic limit of the company? What likely steps might you is set at three miles of either the Jimmy John's take when you leave employment there?

Explanation / Answer

This is specific situation of Jimmy John's reflects the fear of exposing making of the sandwiches in that specific region. This specific decision of Jimmy Johns is declared reflection of increasing competition in the specific field. Does a specific type of decision is totally unethical as it's directly relatable to the bowling the employees were not doing job in the specific region as this is specific chain has a used market presence.

If I were in the HR department for Jimmy john's I would have pointed out pros and cons as follows.

Pros

Cons

If I were an entry level worker at Jimmy Johns requirement of signing non compete agreement would definitely have influenced my opinion and directly turn the company as an unethical company towards the basic labour rights.

I would have done researching about the available jobs before leaving the organisation as it would directly leave me without any job and would have directly reduce my chances of getting a new job in other sandwich making firm.

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