H&R Block Advisors Bring Lawsuit over ‘No-Poach’ Clause

H&R Block advisors are currently embroiled in several lawsuits and investigations across multiple states regarding the company’s no-poach hiring clause.

According to a class action lawsuit filed by plaintiff Melissa R. of Missouri in November 2018, no-poach policies affect the earning ability of former H&R Block advisors by prohibiting them from seeking employment at the places they are most qualified to work.

After Melissa’s H&R Block location closed, she says she sought employment at other franchise locations. But she claims that other franchise operators wouldn’t even talk to her because of the no-poach clause.

H&R Block is a Missouri-based tax preparation company with approximately 12,000 retail offices located in North America, Australia, and India. Employees of H&R Block assist consumers with filing their taxes, as well as assisting with other tax-related concerns.

What is a No-Poach Clause?

No-poach hiring practices are common among fast-food companies, like Domino’s, and other franchise corporations. The purpose of a no-poach clause is to prohibit franchise operators from hiring the employees of another franchise operator in the same chain. “No poach” clauses are meant to prevent employees from being recruited or poached from one location to another. However, former employees claim that no-poach agreements like the one included in the H&R Block advisors franchise agreement harm franchise employees. Melissa’s lawsuit claims that former employees of franchises with no-poach agreements are forced to take lower paying jobs outside of their area of expertise due to the limiting nature of these clauses. According to her lawsuit, the clause also benefited H&R Block by restricting wage competition and suppressing wages. Her lawsuit adds that seasonal tax preparers working for H&R Block earn less than half the national average, and that receptionists at the company earn almost 30 percent less than the national average.

H&R Block Advisors Lawsuits and Investigations

In December 2018, a spokesperson for the Washington Attorney General’s office said that his office was mounting an investigation into no-poach hiring practices at H&R Block, as well as several other franchise corporations. More than three dozen franchise corporations have already signed agreements with the Washington Attorney General’s office to stop using no-poach clauses. These franchise corporations include McDonald’s, Burger King, Pizza Hut, IHOP, Applebee’s, Denny’s, and Cinnabon. Melissa’s H&R Block advisors lawsuit is seeking class action status in order to represent other current or former H&R Block employees who may have been affected by the company’s no-poach clause. The time period covered by her class action lawsuit spans from Jan. 1, 2009 to May 10, 2018.Many employees who work at companies with no-poach clauses may not even realize that they are affected by these agreements. Franchise corporations often include the language regarding no-poach clauses in the hiring paperwork for new employees, who may not read through all of the legalese or even know what to look for. If you are a current or former employee of a franchise corporation that required employees to sign a no-poach clause, you may be eligible to join a free no-poach investigation and pursue compensation.

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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