Both Papa Johns and Jimmy Johns are being targeted by New York Attorney General Eric Schneiderman for mistreating employees. Queens Chronicle reports filed a lawsuit against the owners of six Queens located Papa Johns pizzerias. Emmanuel Onuaguluchi, who lost his law license in 2004 is accused of rounding down his employees hours and not paying them for overtime, even as some worked as much as 50 hours a week. He also made employees pay for their own uniforms, according to the lawsuit, which is illegal and only provided workers with one shirt. Onuaguluchi admitted to some charges under testimony. If he loses the suit, he must pay back wages owed employees, including interest and may be barred from owning additional pizzerias.
Concerning Jimmy Johns’ New York franchises for a non Competition agreement that requires employees promise not to work for another store who gets more than 10% of its revenues from sandwiches within a 2 mile radius. They also sign that they will not work for another Jimmy John’s store for a year after leaving. The Attorney General says this agreement may be illegal and added it is highly unlikely these employees would be privy to and give away trade secrets.