H&R Block Tax Preparer Wages Suppressed by No Poach Agreement, Say Employees

If you work as an H&R Block tax preparer, you may have been harmed by a no poach agreement that keeps employees unable to seek employment at other H&R Block franchisees and keeps wages down.

A past H&R Block tax preparer filed a class action lawsuit against H&R Block claiming that the company had a no poach agreement that prevented him and other employees from seeking employment at company-owned stores and franchisees.

Now, lawyers are investigating claims from other past or present H&R Block tax preparers and managers that they may have been affected by a possible H&R Block no poach agreement.

According to the H&R Block tax preparer, the purpose of this agreement is to decrease competition among franchisees and the company itself so the organization does not have to offer competitive wages and benefits to employees.

Allegedly, H&R Block’s no poaching agreement prohibits and prevents competition between the company and the franchisees by limiting franchisees’ ability to solicit employees who work for H&R Block and other franchisees. According to the past employee, employment applications asked all prospective employees and people seeking new positions to declare if they are a current or former employee at another H&R block location or franchisee, in order to rule out applicants who are already employed.

The lawsuit says that this practice “allows the prospective H&R Block employer to easily flag applicants who are or have been employed by competing H&R Block franchisees or H&R Block corporate stores.”

According to the H&R Block tax preparer no poach agreement lawsuit, the no poach agreement affects tax preparers and managers. Allegedly, the agreement began around January 2009 and lasted until May 2018. The former employee claims that this kind of agreement is illegal under U.S. antitrust laws. Allegedly, the no poach agreement and others like it are anti-competitive because they prevent employees from being upwardly mobile and seeking higher wages.

According to the H&R Block tax preparer class action lawsuit, the company included a “Restrictions on Competition Clause” in franchise license agreements. All franchise owners were required to sign these when they become an H&R Block franchise. Allegedly, this clause stated that “during the term of the Agreement, neither Franchisee nor any of Franchisee’s Associates will, without H&R Block’s prior written consent… Solicit for employment any person who is employed by H&R Block or by any other franchisee of H&R Block.”

Additionally, H&R Block allegedly prevents employees from choosing to move to another franchisee or corporate store location on their own, even if they are not solicited by a franchisee or corporate store.

The ex-H&R Block tax preparer says that H&R Block’s no poach agreement has stunted wages for employees of the company and its franchisees,  as feared. Reportedly, the average pay for a tax preparer at H&R Block is $10.86 per hour, while the average rate for a tax preparer across companies in the industry is $22.76 per hour, according to the Bureau of Labor Statistics.

Join a Free H&R Block Employee Class Action Lawsuit Investigation

If you were an H&R Block employee at any time between 2009 and May 2018 and were prevented from obtaining employment at another H&R Block franchise, you may qualify to file an H&R Block class action lawsuit.

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