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A recent class action antitrust lawsuit alleges H&R Block had a no poaching agreement between its branches in order to keep labor costs down. The antitrust lawsuit alleges the no poaching agreement prevented H&R Block tax preparers from finding higher paying positions in different franchise locations, which would have given them better employment benefits.
Lead plaintiff Janice D. alleges she and other H&R Block tax preparers were not given competitive wages, and were not able to leverage their skills to ask for better pay and better employment benefits in general.
According to the antitrust lawsuit, Janice had worked as a H&R Block tax preparer between the 2012 and 2013 tax seasons and alleges she was denied sufficient compensation for her time due to the alleged conspiracy between the franchisee locations.
H&R Block allegedly included a no poaching agreement between its franchisees, which stated they would not try to poach each other’s tax preparers.
Overview of H&R Block No Poaching Agreement Problems
H&R Block is a tax preparation company that offers personal consultation appointments for people to help them prepare for the next tax year, with approximately 10,000 offices across the United States. As of 2018, approximately 3,300 of its locations are franchise owned while 6,700 others are corporate owned locations.
In addition, H&R Block states it employs “70,000 highly trained tax professionals worldwide,” which means the company is able to provide competitive wages to its tax preparers.
It is important to note that tax preparation is a fairly competitive market, with millions of consumers having to prepare their taxes every year in the United States.
Given this information, H&R Block tax preparers should have been provided a competitive wage rate and have the freedom to move to a different franchise location if offered better employment benefits.
However, this was reportedly impossible for Janice and other H&R Block tax preparers due to the alleged no poaching agreement. For example, Janice points out that H&R Block seasonal tax preparers have an average pay rate of $10.86 per hour while the Bureau of Labor Statistics (BLS) shows the average hourly rate of other tax preparers was at $22.67.
She argues that H&R Block employees can have a variety of occupational duties depending on their position, and are entitled to competitive wage rates based on the average salaries of the position in the United States.
According to the antitrust lawsuit, the H&R Block franchise agreement included a clause that reportedly prohibited any franchise locations from hiring each other’s employees. In addition, franchisees or its associates cannot hire H&R Block tax preparers from different locations without recent consent from the company.
This restriction was placed on franchise locations from poaching employees, so H&R Block could allegedly artificially suppress their employees’ wages in a highly specialized industry.
According to the antitrust lawsuit, this no poaching clause was active until May 2018 and affected numerous H&R Block tax preparers. Janice reiterates the fact that she and other H&R Block tax preparers were not given competitive wages and were not seek better work opportunities, and is seeking relevant damages under the Sherman Act.
This Antitrust Lawsuit is Case No. 4:18-cv-01022-BCW, in the U.S. District Court of Western Missouri.
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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3 thoughts onH&R Block Tax Preparers Allegedly Denied Competitive Wages due to No Poaching Agreement
I worked there 2008/2009 season. Is it too late to join?
I worked two years, tried/applied the following year, and received no cooperation with the initial requirements.
Is it too late to join the H&R Block investigation? I worked down in Florida in 2009.