Scrutiny on agreements banning low or middle-wage workers from competing against old boss

A sign advertises hiring opportunities at a Jimmy Johns sandwich shop, as an employee walks out to make a delivery, Friday, Jan. 2, 2015, in Atlanta. A lawsuit targeting the fast-food sandwich chain has put scrutiny on agreements banning low- and middle-wage workers from competing against their former employers. (AP Photo/David Goldman)(The Associated Press)

A pedestrian passes by a Jimmy Johns sandwich shop, Friday, Jan. 2, 2015, in Atlanta. A lawsuit targeting the fast-food sandwich chain has put scrutiny on agreements banning low- and middle-wage workers from competing against their former employers. (AP Photo/David Goldman)(The Associated Press)

Pedestrians pass by a Jimmy Johns sandwich shop, Friday, Jan. 2, 2015, in Atlanta. A lawsuit targeting the fast-food sandwich chain has put scrutiny on agreements banning low- and middle-wage workers from competing against their former employers. (AP Photo/David Goldman)(The Associated Press)

In this Dec. 11, 2014 photo, Caitlin Turowski poses at her home in Park City, Ill. Turowski is a plaintiff in a lawsuit targeting fast-food sandwich chain Jimmy John's for making low- and middle-wage workers sign agreements banning them from competing against their former employers for two years. (AP Photo/Nam Y. Huh)(The Associated Press)

In this Dec. 11, 2014 photo, Caitlin Turowski poses at her home in Park City, Ill. Turowski is a plaintiff in a lawsuit targeting fast-food sandwich chain Jimmy John's for making low- and middle-wage workers sign agreements banning them from competing against their former employers for two years. (AP Photo/Nam Y. Huh)(The Associated Press)

ATLANTA Fast food worker Caitlin Turowski had this much in common with high-paid CEOs: When she quit her job, she couldn't work for a competitor.

Hired as a delivery driver for sandwich maker Jimmy John's and later made an assistant manager, Turowski said she signed a two-year non-competition agreement banning her from working for sandwich-making rivals within three miles of a Jimmy John's store. Burned out by long hours and low pay, Turowski quit in July, then took a pay cut to work in insurance telemarketing. She could earn more waitressing or bartending, but fears being sued.

"We're struggling," said Turowski, now a plaintiff challenging alleged wage violations and the non-compete agreement.

Non-competition agreements are better known in contracts for senior executives who have business secrets of interest to competitors. However, court records show the restrictions have also snared maids in Chicago, a nail stylist in Texas, cable TV installers in Michigan and agricultural workers in Washington. In October, Democrats in Congress asked the U.S. Federal Trade Commission and Department of Labor to investigate.

The agreements for low-wage workers might trap them in their current jobs, allowing their employers to pay them lower salaries, experts said. "It has a chilling effect on people actually going out and trying to seek jobs because they fear getting sued," said Kathleen Chavez, an attorney for Turowski and others. "This is not like a high-wage, skilled worker who says, 'OK, let them sue me. I'll defend myself.'"

Go here to see the original:
Scrutiny on agreements banning low or middle-wage workers from competing against old boss