Papa John’s class action over no-poaching agreements settled for $5M

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Papa John’s no poaching class action settlement overview: 

• Who: Papa John’s has agreed to pay $5 million to resolve claims it included unlawful “no-poach” agreements in its agreements with franchisees. 
• Why: The no-poach agreements stipulated that franchise owners could not hire workers from each other or from any Papa John’s-owned establishment. 
• Where: The class action lawsuit was filed in Kentucky federal court. 

Papa John’s has agreed to pay $5 million to resolve claims the company included unlawful “no poach” provisions as a stipulation in its franchise agreements.  

The pizza restaurant was accused of prohibiting store owners from hiring workers from other franchisees or establishments owned by Papa John’s. 

Workers argued that the Papa John’s no poaching agreements were undercutting their pay and  stagnating their mobility by eliminating the competition for their labor among different Papa John’s restaurants, reports Law360. 

Eligible Class Members can expect to receive at most a few hundred dollars each from the class action settlement, with the final amount depending on how many individuals make claims to receive compensation. 

Papa John’s executives required to undergo antitrust compliance training

Papa John’s will also be required to have its domestic vice presidents and domestic executives go through “antitrust compliance training,” and commit to its franchisees that it won’t enforce any existing no-poach provisions, per the settlement. 

Any new Papa John’s franchise agreements made within the next five years will also not be able to include a no-poach provision, according to the Papa John’s class action settlement. 

Papa John’s—along with a number of other fast food restaurants—previously agreed in 2018 to give up its no-poaching policies.

The restaurant’s decision came after state attorney generals and the U.S. Department of Justice began investigating whether no-poach agreements made by companies were violating antitrust laws. 

A federal judge in Kentucky previously declined a request by Papa John’s  to dismiss the class action lawsuit, reports Law360. 

Has your ability to work for a company been hindered on account of a no poach agreement? Let us know in the comments! 

The plaintiffs are represented by Scott + Scott Attorneys at Law LLP, McCune Wright Arevalo LLP, Lieff Cabraser Heimann & Bernstein LLP, Lowey Dannenberg PC, Radice Law Firm PC, and Moore Law Group PLLC.

The Papa John’s no poaching class action settlement is In re: Papa John’s Employee and Franchisee Employee Antitrust Litigation, Case No. 3:18-cv-00825, in the U.S. District Court for the Western District of Kentucky.

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