Jimmy John’s is a popular sandwich chain that sells fresh subs for $5. A restaurant that brandishes its “free smells” logo, it imposed an astonishing and not-so-fragrant rule on its sandwich makers and delivery drivers. If these employees stopped working for the Jimmy John’s restaurant, they were prohibited from taking another job with any restaurant that sells sandwiches within a three mile range.

Many employers in many sectors insist on including a similar restriction in their contracts, as a condition for hiring a job applicant. Known as the “non-compete clause,” this restriction forbids employees who are fired or resign from working for a competitor or starting a competing business. According to a recent count, 20% of U.S. workers are bound by non-compete agreements, including 14%of those earning less than $40,000 per year.

The Obama administration wants to ban these non-compete agreements, and issued this week a “call for action” in an effort to “stoke competition” and “give a fair shot to workers,” hoping it would lead to faster wage growth. The White House’s chief economic advisor believes that “If you have less of an ability to threaten to leave one job for a better job then you have less of an ability to earn.”

Read more at Forbes